English
Valencià
I plan to conduct an experiment to study investors’ social preferences. I will focus on business angels’ investment in start-up firms and entrepreneur- ships where trust and reciprocity represent the main ingredients of firm’s social capital. In this study I will examine to what extend the third party, in the modified Trust Game (Berg et al., 1995), is socially concerned in re- peated interaction setting. Third party, the Investor, is an economic agent who might incur or not in costly decision of investing money in the firm which is composed by entrepreneur and worker. Investor obtains benefits from worker’s commitment to act in entrepreneur’s interest by taking a part of entrepreneur’s final profit. Investor’s contribution to the social dilemma can be induced by entrepreneur’s trust, worker’s reciprocity or both, as well as Investor’s own trust on firm. Research on this topic is important because financing entrepreneurial ventures strongly affects the economy in terms of job creation and firms’ survival and growth over time.