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network that connects them. We find that information supports cooperation by increasing trust between players, and obtain the … 'radius of trust': an endogenous network listing the potentially cooperative relationships between pairs of players in a … community. We identify two aspects of trust, which relate to the network structure in different ways. Where trust depends on the …
Persistent link: https://www.econbiz.de/10011928009
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/10010420270
We interpret the psychology literature on social identity and examine its implications in a population partially composed of such agents. We model a population of agents from two exogenous and well defined social groups. Agents are randomly matched to play a reduced form bargaining game. We show...
Persistent link: https://www.econbiz.de/10010266354
preferences in combination with reputation opportunities keep principals from abusing their power, leading to the widespread …
Persistent link: https://www.econbiz.de/10010316905
This paper argues that an external monitor can be less effective when there is uncertainty regarding the quality of the management and the business environment. In a two-period model, an outside monitor, who initially does not know managerial quality, can have the manager fired. The manager...
Persistent link: https://www.econbiz.de/10010318924
the loss of reputation accumulated by a pseudonym over time. Another involves charging a fee to create pseudonyms …
Persistent link: https://www.econbiz.de/10015046550
-lived agent builds trust over time and improves their reputation by keeping the scheme going. …
Persistent link: https://www.econbiz.de/10015394097
Reputation is a commonly cited check on opportunism in economic and social interactions. But it is often unclear what …
Persistent link: https://www.econbiz.de/10011526719
It is known that there are uncoupled learning heuristics leading to Nash equilibrium in all finite games. Why should players use such learning heuristics and where could they come from? We show that there is no uncoupled learning heuristic leading to Nash equilibrium in all finite games that a...
Persistent link: https://www.econbiz.de/10011545296
gradually builds up her reputation. Principal provides full information in every period as long as he has always observed his …
Persistent link: https://www.econbiz.de/10011696314