Trust and reciprocity in Cyprus

•We analyze intra- and inter-cultural differences in trust and reciprocity between Turks, Turkish, and Greek Cypriots.•We find that Cypriots have similar levels of trust towards others in general.•We find no inter-cultural differences of trust among Cypriots which is against the popular belief.•However, Turkish Cypriots are less reciprocal towards Greek Cypriots than they are towards members of their own community.•Greek Cypriots who had at least one parent displaced after the civil war trust Turks less than those whose parents weren't.

This paper documents a series of experiments analyzing intra- and inter-cultural differences in trust and reciprocity between Turks, Turkish Cypriots, and Greek Cypriots. Our findings challenge the popular belief in international circles that there is mistrust between the two communities living in Cyprus. First of all, we find that Cypriots have similar levels of trust towards others in general, although the two communities have different ethnic, religious, and socioeconomic characteristics. Furthermore, we find no inter-cultural differences in trust among Cypriots. However, Turkish Cypriots are less reciprocal towards Greek Cypriots than they are towards members of their own community. Finally, we find that the Greek Cypriots who had at least one parent displaced after the civil war in Cyprus trust Turkish people less compared to those whose parents were not displaced, but no such mistrust exists against Turkish Cypriots. These findings indicate that in terms of trusting behavior, Cypriots on the island are more similar than what is portrayed by the politicians.