We investigate the dynamic process of building trust in bilateral social interactions in the context of a repeated game with two-sided incomplete information. Our particular interest regards mutual communication of trustworthiness. The underlying stage-game resembles properties of a ''Continuous...

We present a model of investors acquiring forecasts from a group of investment analysts. Investors may pick an analyst based on his past performance. In the literature it is typically assumed that agents' rewards depend solely on the type they are perceived to be, which leads to typical herding...