We study the policy choice of an office-holding politician who is concerned with the public's perception of his capabilities. The politician decides whether to maintain the status quo or to conduct a risky reform. The reform's success depends critically on the politician's capabilities, which...

We study the policy choice of an incumbent politician who is concerned with the public's perception of his capability. The politician decides whether to maintain the status quo or to conduct a risky reform. The success of the reform critically depends on the ability of the politician in oce,...

We consider a two-agent hierarchical organization with a leader and a manager in a reputation-signaling model. The manager proposes an innovative but risky project to the leader, and decides whether to exert an effort to improve the value of the project, which benefits the organization. The...