We study the impact of limited records on reputation dynamics, that is, how the set of equilibria and equilibrium payoffs changes in a model in which one long-lived player faces a sequence of short-lived players who observe only limited information about past play (the last K periods of the...

We study the design of monitoring in dynamic settings with moral hazard. An agent (e.g. a firm) benefits from reputation for quality, and a principal (e.g. a regulator) can learn the agent's quality via costly inspections. Monitoring plays two roles: an incentive role, because outcomes of...

We study a firm's incentives to build and maintain reputation for quality, when quality is persistent and can be certified at a cost. We characterize all Markov-perfect equilibria where the firm's choices -i.e., timing of certification and investment– depend only on the firm's reputation. MPE...