Showing 1 - 10 of 55
network that connects them. We find that information supports cooperation by increasing trust between players, and obtain the … 'radius of trust': an endogenous network listing the potentially cooperative relationships between pairs of players in a … community. We identify two aspects of trust, which relate to the network structure in different ways. Where trust depends on the …
Persistent link: https://www.econbiz.de/10011928009
preferences in combination with reputation opportunities keep principals from abusing their power, leading to the widespread …
Persistent link: https://www.econbiz.de/10010316905
This paper argues that an external monitor can be less effective when there is uncertainty regarding the quality of the management and the business environment. In a two-period model, an outside monitor, who initially does not know managerial quality, can have the manager fired. The manager...
Persistent link: https://www.econbiz.de/10010318924
the loss of reputation accumulated by a pseudonym over time. Another involves charging a fee to create pseudonyms …
Persistent link: https://www.econbiz.de/10015046550
We interpret the psychology literature on social identity and examine its implications in a population partially composed of such agents. We model a population of agents from two exogenous and well defined social groups. Agents are randomly matched to play a reduced form bargaining game. We show...
Persistent link: https://www.econbiz.de/10010266354
want to develop a reputation as a commitment type by mimicking the commitment type's actions But the uninformed player … rational player does not benefit from developing a reputation In the case of equally patient players I show that the folk … Thomas (1993) argue that reputation effects can rule out outcomes permitted by the folk theorem regardless of how small the …
Persistent link: https://www.econbiz.de/10010293459
We investigate the impact of self-organized reputation versus certification by an independent institution on demand for … independent institution increase demand more than feedback-based reputation. This result is important for markets where the market …
Persistent link: https://www.econbiz.de/10010294857
remains unclear. In each of six treatments that vary the cooperation premium and the informational basis for reputation … forces of (a) learning about the benefits of reputation, and (b) learning about backward unraveling. We find, inter alia …, that with a high cooperation premium and good information, investment in reputation grows across sets of finitely …
Persistent link: https://www.econbiz.de/10010420270
We develop and estimate a general equilibrium model in which monetary policy can deviate from active in.ation stabilization and agents face uncertainty about the nature of these deviations. When observing a deviation, agents conduct Bayesian learning to infer its likely duration. Under...
Persistent link: https://www.econbiz.de/10011460672
gradually builds up her reputation. Principal provides full information in every period as long as he has always observed his …
Persistent link: https://www.econbiz.de/10011696314