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Experts and Their Records
Frankel, Alexander - 2009
Consider an environment where long-lived experts repeatedly interact with short-lived customers. In periods when an expert is hired, she chooses between providing a profitable major treatment or a less profitable minor treatment. The expert has private information about which treatment best...
Persistent link: https://www.econbiz.de/10012463727
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Trust and Social Collateral
Mobius, Markus - 2007
This paper builds a theory of informal contract enforcement in social networks. In our model, relationships between individuals generate social collateral that can be used to control moral hazard when agents interact in a borrowing relationship. We define trust between two agents as the maximum...
Persistent link: https://www.econbiz.de/10012465528
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Trust and Opportunism in Close Corporations
Mahoney, Paul G. - 1998
possibility of non-legal sanctions, including family or social disapproval and loss of reputation. The paper applies the analysis …
Persistent link: https://www.econbiz.de/10012471994
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Satisfaction Guaranteed : When Moral Hazard meets Moral Preferences
Andreoni, James - 2017
Theorists and policy analysts have convincingly argued that greater trust makes a more efficient society by eliminating costly contracts or expensive reputations. Concurrently, experiments suggest that reciprocity is a potent substitute for law when compliance with contracts is imperfectly...
Persistent link: https://www.econbiz.de/10012455329
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Supply and Demand for Discrimination : Strategic Revelation of Own Characteristics in a Trust Game
Heyes, Anthony - 2016
There is a large and diverse body of evidence that people condition their behavior on the characteristics of others. If type is visible then one agent seeing another with whom they are interacting, or observing some other close proxy for type, can affect outcomes. We explore the economics of...
Persistent link: https://www.econbiz.de/10012456720
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Trust, Values and False Consensus
Butler, Jeffrey - 2012
Trust beliefs are heterogeneous across individuals and, at the same time, persistent across generations. We investigate one mechanism yielding these dual patterns: false consensus. In the context of a trust game experiment, we show that individuals extrapolate from their own type when forming...
Persistent link: https://www.econbiz.de/10012460200
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The Determinants of Trust
Alesina, Alberto - 2000
Both individual experiences and community characteristics influence how much people trust each other. Using data drawn from US localities we find that the strongest factors that reduce trust are: i) a recent history of traumatic experiences, even though the passage of time reduces this effect...
Persistent link: https://www.econbiz.de/10012471150
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Trust in Lending
Thakor, Richard T. - 2018
We develop a theory of trust in lending, distinguishing between trust and reputation, and use it to analyze the … financing, whereas a loss of investor trust makes this access conditional on market conditions and lender reputation. Banks …
Persistent link: https://www.econbiz.de/10012452943
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Designing Online Marketplaces : Trust and Reputation Mechanisms
Luca, Michael - 2016
reputation mechanisms …
Persistent link: https://www.econbiz.de/10012456063
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Games Daughters and Parents Play : Teenage Childbearing, Parental Reputation, and Strategic Transfers
Hao, Lingxin - 2000
In this paper, we examine the empirical implications of reputation formation using a game-theoretic model of intra …-familial interactions. We consider parental reputation in repeated two-stage games in which daughters' decision to have a child as a … work of Milgrom and Roberts (1982) and Kreps and Wilson (1982) on reputation in repeated games, we show that parents have …
Persistent link: https://www.econbiz.de/10012471097