We analyze a noncooperative dynamic game of group formation with group reputation. It is inspired by observations of "name adoption" patterns in some retail markets. Firms are partitioned into name groups, or affiliation networks, in each period. In a group, all firms share the same group...

This paper is inspired by real-world phenomena that firms lose customers based on imprecise information and take a long time to recover. If consumers are playing an ordinary repeated game with fixed partners, there is no clear reason why recovery slowly happens. However, if consumers are playing...