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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
want to develop a reputation as a commitment type by mimicking the commitment type's actions But the uninformed player … rational player does not benefit from developing a reputation In the case of equally patient players I show that the folk … Thomas (1993) argue that reputation effects can rule out outcomes permitted by the folk theorem regardless of how small the …
Persistent link: https://www.econbiz.de/10010293459
We investigate the impact of self-organized reputation versus certification by an independent institution on demand for … independent institution increase demand more than feedback-based reputation. This result is important for markets where the market …
Persistent link: https://www.econbiz.de/10010294857
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
We analyze a repeated cheap-talk game in which the receiver is privately informed about the conflict of interest between herself and the sender and either the sender or the receiver controls the stakes involved in their relationship. We focus on payoff-dominant equilibria that satisfy a...
Persistent link: https://www.econbiz.de/10012060207
of privately known competence, who cares about his reputation, chooses the timing of the forecast regarding the outcome …. Further, any report hurts the forecaster's reputation in the short run, with later reports incurring larger penalties. The … reputation of a silent forecaster, on the other hand, gradually improves over time. …
Persistent link: https://www.econbiz.de/10012140661
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
We develop and estimate a general equilibrium model in which monetary policy can deviate from active in.ation stabilization and agents face uncertainty about the nature of these deviations. When observing a deviation, agents conduct Bayesian learning to infer its likely duration. Under...
Persistent link: https://www.econbiz.de/10011460672
have preferences over possible opponents. We model reputation as a noisy observation of actual propensity to cooperate and … illustrate how reputation based choice of opponents can explain both the emergence and deterioration of cooperation. We show that … risk of damaging their reputation as nice, cooperative persons. …
Persistent link: https://www.econbiz.de/10013208482
to cooperate, called reputation, and form preferences over opponents based on their reputation. A game takes place when … two agents agree to play. Pareto optimal cooperation is evolutionarily stable when reputation perfectly reflects … propensity to cooperate. With some reputation noise, there will be at least some cooperation. Individual concern for reputation …
Persistent link: https://www.econbiz.de/10013208494