Himalaya Girard

Hi, I'm Himalaya Girard

Research Assistant at the Donders Institute.
Deconvolving Trust from Risk using Prospect Theory.

Would you trust a stranger with $10?

What if it was a dice roll instead?

Traditional economics treats trust and risk as identical. But behaviorally and neurally, they're profoundly different. This research uses Prospect Theory to understand why.

Trust Game

01 You have $10

02 → Invest with Partner B

03 → Amount triples

04 → Partner decides what to return

The uncertainty:

Will they be generous or selfish?

Risk Game

01 You have $10

02 → Invest in lottery

03 → Amount triples

04 → Computer randomly returns money

The uncertainty:

Pure chance, no human decision

"The fact that investments and returns are positive in most experiments is a puzzle from a game-theoretic viewpoint."
— Berg, Dickhaut, & McCabe (1995)

My Approach

I'm testing if Prospect Theory, the Nobel Prize-winning math of gambling, can explain why we trust strangers.

The Framework

Prospect Theory

The Innovation

Inverted Trust Game

The Goal

Deconvolve trust from risk