Dear colleagues, The Department of Economics cordially invites you to the WU Economics Research Seminar on Wednesday, June 25th, with Andrea Martinangeli (Université Paris 2) on "Externalities and the erosion of trust" Abstract: We present a theory explaining how divergent opinions about the regulation of an externality problem can lead to distrust of both political institutions and other people. Those who are more concerned about the externality distrust the government because they perceive the rule as too lenient. Those who are less concerned blame the government because they have to comply with a rule they consider useless. In addition, the rule shapes individuals' expectations of civic behavior in society. Therefore, regulation can lead to disappointment and interpersonal distrust when others do not follow the rules. Those who are more concerned also value civic behavior more, so they lose even more trust in others. Our survey experiment in four European countries supports these patterns in the context of the Covid-19 pandemic. Date: Wednesday, June 25th Time: 4.30 to 6 pm (CET) Location: building D4, ground floor, D4.0.144<https://campus.wu.ac.at/?q=D4.0.144> With best regards, Harald Oberhofer --- Univ.-Prof. Dr. Harald Oberhofer Department of Economics WU Vienna University of Economics and Business Phone: +43/1/31336-4984 Email: harald.oberhofer@wu.ac.at<mailto:harald.oberhofer@wu.ac.at> https://www.wu.ac.at/en/economics/people/oberhofer-h Austrian Institute of Economic Research (WIFO) Phone: +43/1/7982601-468 Email: harald.oberhofer@wifo.ac.at<mailto:harald.oberhofer@wifo.ac.at> http://www.wifo.ac.at/harald_oberhofer