Should principals explain and justify their evaluations? In this paper the principal's evaluation is private information, but she can provide justification by sending a costly cheap-talk message. I show that the principal explains her evaluation to the agent if the evaluation turns out to be...

Reputation is a commonly cited check on opportunism in economic and social interactions. But it is often unclear what would motivate an agent to report another’s behavior when the pool of potential partners is large and it is easy enough for an aggrieved player to move on. We argue that...