Competition in Finance Undermines Trust and Social Identity, Study Finds.
The study looked at how competition among finance providers affects trust and trustworthiness in a trust game. They found that competition did not impact trust in a game with strangers, but in a game with in-group and out-group investors, competition reduced trustworthiness. This suggests that when competition is involved, people may see investments as part of a competitive process rather than genuine trust, leading to less trustworthiness.