This article analyses the role of information in building reputation in an investment/trust game. The model allows for information asymmetry in a finitely repeated sender-receiver game and solves for sequential equilibrium to show that if there are some trustworthy managers who always disclose...

This paper examines experimentally the reputation building role of disclosure in an investment/trust game. It provides experimental evidence in support of sequential equilibrium behavior in a finitely repeated investment/trust game where information asymmetry raises the possibility of voluntary...

This paper studies trade in a first-price sealed bid auction where agents know only a range of possible payoffs. The setting is one in which a winner's curse arises, so that if agents have common risk preferences and common priors, then expected utility theory leads to a prediction of no trade....