Related papers: Reputation Effects under Short Memories
Content creators compete for exposure on recommendation platforms, and such strategic behavior leads to a dynamic shift over the content distribution. However, how the creators' competition impacts user welfare and how the relevance-driven…
Many online marketplaces enjoy great success. Buyers and sellers in successful markets carry out cooperative transactions even if they do not know each other in advance and a moral hazard exists. An indispensable component that enables…
We consider a dynamic pricing problem where customer response to the current price is impacted by the customer price expectation, aka reference price. We study a simple and novel reference price mechanism where reference price is the…
We study expert advice under reputational incentives, with sell-side equity research as the lead application. A long-lived analyst receives a continuous private signal about a binary payoff and recommends a risky (Buy) or safe action.…
A good group reputation often facilitates more efficient synergistic teamwork in production activities. Here we translate this simple motivation into a reputation-based synergy and discounting mechanism in the public goods game.…
The cognitive research on reputation has shown several interesting properties that can improve both the quality of services and the security in distributed electronic environments. In this paper, the impact of reputation on decision-making…
We study an overlapping-generations model of community enforcement where each agent interacts once as young and once as old across two groups. After each match a minimal, directed record assigns a public "stigma" only when a player defects…
When opposing parties compete for a prize, the sunk effort players exert during the conflict can affect the value of the winner's reward. These spillovers can have substantial influence on the equilibrium behavior of participants in…
In many service markets, expert providers possess an information advantage over consumers regarding the necessary services, creating opportunities for fraudulent practices. These may involve overtreatment through unnecessary services or…
We consider a simple binary market model containing $N$ competitive agents. The novel feature of our model is that it incorporates the tendency shown by traders to look for patterns in past price movements over multiple time scales, i.e.…
We study a repeated sender-receiver game where inspections are public but the sender's action is hidden unless inspected. A detected deception ends the relationship or triggers a finite punishment. We show the public state is one…
We propose a payoff function extending Minority Games (MG) that captures the competition between agents to make money. In constrast with previous MG, the best strategies are not always targeting the minority but are shifting…
Does electoral replacement ensure that officeholders eventually act in voters' interests? We study a reputational model of accountability. Voters observe incumbents' performance and decide whether to replace them. Politicians may be "good"…
We consider a community of users who must make periodic decisions about whether to interact with one another. We propose a protocol which allows honest users to reliably interact with each other, while limiting the damage done by each…
Reputation plays a crucial role in social interactions by affecting the fitness of individuals during an evolutionary process. Previous works have extensively studied the result of imitation dynamics without focusing on potential irrational…
Reputation is a powerful mechanism to enforce cooperation among unrelated individuals through indirect reciprocity, but it suffers from disagreement originating from private assessment, noise, and incomplete information. In this work, we…
This paper studies a setting in which multiple suppliers compete for a buyer's procurement business. The buyer faces uncertain demand and there is a requirement to reserve capacity in advance of knowing the demand. Each supplier has costs…
The mechanism of the online user preference evolution is of great significance for understanding the online user behaviors and improving the quality of online services. Since users are allowed to rate on objects in many online systems,…
Direct reciprocity is a mechanism for the evolution of cooperation in repeated social interactions. According to this literature, individuals naturally learn to adopt conditionally cooperative strategies if they have multiple encounters…
Two long-lived senders play a dynamic game of competitive persuasion. Each period, each provides information to a single short-lived receiver. When the senders also set prices, we unearth a folk theorem: if they are sufficiently patient,…