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  3. American Economic Review
  4. June 2011
  5. Face Value

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Face Value

  • Catherine C. Eckel
  • Ragan Petrie
American Economic Review
vol. 101, no. 4, June 2011
(pp. 1497–1513)
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Abstract

People pay attention to the appearance of others, and personal characteristics can affect many types of decisions. We ask, is there informational value in a face in a situation where trust and reciprocity can increase earnings? We use a laboratory trust game experiment where subjects are unable to observe a counterpart, must observe a counterpart, or can pay to reveal a counterpart's photograph. Both senders and responders are willing to pay to observe the photos, and we show that behavior, earnings, and efficiency are affected. When subjects are "face to face," efficiency is enhanced, and senders have higher earnings. (JEL D12, D83, Z13)

Citation

Eckel, Catherine C., and Ragan Petrie. 2011. "Face Value." American Economic Review, 101 (4): 1497–1513. DOI: 10.1257/aer.101.4.1497

Additional Materials

JEL Classification

  • D12 Consumer Economics: Empirical Analysis
  • D83 Search; Learning; Information and Knowledge; Communication; Belief
  • Z13 Economic Sociology; Economic Anthropology; Social and Economic Stratification