Cooperative membership as a signal of trust and trustworthiness in a low income economic environment: a randomized experiment in the Philippines

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Cooperative affiliation implies a series of actions in which members are first movers and trust that the organisation will reciprocate them. Acceptance of a member and her/his survival in the organisation suggests as well that the member has been regarded as trustworthy by the latter. Based on these considerations we assume that cooperative membership is a trust and trustworthiness reinforcing device and, as such, it affects (in an investment game setting) both (trustors and trustees) contributions and beliefs, thereby generating payoff enhancing effects and thereby economic development opportunities.