efficiency, we find that liability has a crucial, but verifiability only a minor effect. Allowing sellers to build up reputation … higher efficiency as long as liability is violated. -- Credence goods ; experiment ; liability ; verifiability ; reputation …

part of the social network. We examine what makes the decision to trust a stranger different from the decision to trust a … implement a binary trust game with hidden action in a lab-in-the-field experiment with residents of an informal housing area in … Cairo. Our results show that trust is higher among friends than among strangers and that higher trust among friends is …

Reputation systems aim to induce honest behavior in online trade by providing information about past conduct of users …. Online reputation, however, is not directly connected to a person, but only to the virtual identity of that person. Users can … therefore shed a negative reputation by creating a new account. We study the effects of such identity changes on the efficiency …

their lies when settings allow for reputation-building. While some lies can be detected ex post by the uninformed party …, others remain deniable. We find that traditional market mechanisms such as reputation generate strong changes in the way … better by substituting deniable lies for detectable lies. Our results highlight the limitations of reputation to root out …

opportunistic behavior with multiple realizations. The consequent reputation concerns dramatically reduce cheating by large amounts …