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We study the role of information about the multiplier in a finitely repeated investment game. A high multiplier increases the reputational incentives of a trustee, leading to more repayments. Our perfect Bayesian equilibrium analysis shows that if the trustee is privately informed about the...
Persistent link: https://www.econbiz.de/10012422494
can be sustained by reputation motives in spite of the inherent conflict of interests between sellers and buyers. In the … absence of “commitment” types, reputation motives are explained as a consequence of equilibrium interplay between the market …, reputation motives do not disappear even after the seller’s ability is revealed. This model is applied to examine the extent to …
Persistent link: https://www.econbiz.de/10014203351
I study a repeated game in which a patient player wants to win the trust of some myopic opponents but can strictly benefit from betraying them. His benefit from betrayal is strictly positive and is his persistent private information. I characterize every type of patient player's highest...
Persistent link: https://www.econbiz.de/10012587361
I study reputation models in which information about the long-run player's past behavior is dispersed among short …-run players. I identify two challenges to reputation building when such information is aggregated via the short-run players …-run player's current period action, I propose a resistent to learning condition under which reputation fails. This is because the …
Persistent link: https://www.econbiz.de/10012169393
To analyze strategic interactions arising in the cyber-security context, we develop a new reputation game model in …
Persistent link: https://www.econbiz.de/10013297152
We consider an infinitely repeated game in which a privately informed, long-lived manager raises funds from short-lived investors in order to finance a project. The manager can signal project quality to investors by making a (possibly costly) forward-looking disclosure about her project's...
Persistent link: https://www.econbiz.de/10011504350
We consider an infinitely repeated game in which a privately informed, long-lived manager raises funds from short-lived investors in order to finance a project. The manager can signal project quality to investors by making a (possibly costly) forward-looking disclosure about her project's...
Persistent link: https://www.econbiz.de/10011506852
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/10010126752
Building on the seminal paper of Ordover, Saloner and Salop (1990), I study the role of reputation building on … foreclosure in laboratory experiments. In one-shot interactions, upstream firms can choose to build a reputation by revealing … their price history to the current upstream competitor. In particular, integrated firms can establish a reputation to …
Persistent link: https://www.econbiz.de/10011555141
This paper studies individual truth-telling behavior in the presence of multiple lying opportunities with heterogeneous stake sizes. The results show that individuals lie downwards (i.e. forgo money due to their lie) in low-stakes situations in order to signal honesty, and thereby mitigate the...
Persistent link: https://www.econbiz.de/10012111150