This paper investigates the use of reputation in an economy where principals hire agents for two different kinds of … acquire some information on the past behavior of her current agent. This allows consideration of two different reputation … information about past defections is available separately for each task. The two kinds of reputation can be interpreted as …

, when motivated agents value the collective reputation of their place of employment, steady-state equilibria with both high … and low aggregate motivation (reputation) in the mission-oriented sector exist. Reforming a low-motivation institution …, but positive for a low-reputation institution, a transition to a high-reputation steady state requires an initial wage …