Related papers: Reputation Effects with Endogenous Records

Consumers often resort to third-party information such as word of mouth, testimonials and reviews to learn more about the quality of a new product. However, it may be difficult for consumers to assess the precision of such information. We…

We study privacy-utility trade-offs where users share privacy-correlated useful information with a service provider to obtain some utility. The service provider is adversarial in the sense that it can infer the users' private information…

Reputation is not just a simple opinion that an individual has about another but a social construct that emerges through communication. Despite the huge importance in coordinating human behavior, such a communicative aspect has remained…

Through a stochastic control theoretic approach, we analyze reputation games where a strategic long-lived player acts in a sequential repeated game against a collection of short-lived players. The key assumption in our model is that the…

Indirect reciprocity maintains cooperation in stranger societies by mapping individual behaviors onto reputation signals via social norms. Existing theoretical frameworks assume static environments with constant resources and fixed payoff…

In a continuous-time setting we investigate how the management of a firm controls a dynamic choice between two generic voluntary disclosure decision rules: one with full and transparent disclosure termed $\it{candid}$, the other, termed…

This paper develops a model in which a sender strategically communicates with a group of receivers whose payoffs depend on the sender's information. It is shown that aggregate payoff externalities create an endogenous conflict of interests…

I prove that it is irrational for agents with even slightly private preferences to condition their strategy on private information that is payoff-irrelevant to them, contrary to powerful techniques for analyzing communication and repeated…

Indirect reciprocity promotes cooperation by allowing individuals to help others based on reputation rather than direct reciprocation. Because it relies on accurate reputation information, its effectiveness can be undermined by information…

How can voters induce politicians to put forth more proximate (in terms of preference) as well as credible platforms (in terms of promise fulfillment) under repeated elections? Building on the work of Aragones et al. (2007), I study how…

This paper builds a finite-horizon model to study the role of physical collateral in a model of strategic defaults, when the borrower can develop reputation for honesty. Asset ownership increases attractiveness of the reputational channel:…

A platform charges a producer for disclosing quality evidence to consumers before trade. It aims to maximize its revenue guarantee across potentially multiple equilibria which arise from the interdependence of producer purchase decisions…

The concept of reputation is widely used as a measure of trustworthiness based on ratings from members in a community. The adoption of reputation systems, however, relies on their ability to capture the actual trustworthiness of a target.…

Reputation systems aim to reduce the risk of loss due to untrustworthy participants. This loss is aggravated by dishonest advisors trying to pollute the e-market environment for their self-interest. A major task of a reputation system is to…

For product rating environments, similar to that of Amazon Reviews, it has been shown that the truthful elicitation of feedback is possible through mechanisms which pay buyer reports contingent on the reports of other buyers. We study…

Indirect reciprocity is a mechanism by which individuals cooperate with those who have cooperated with others. This creates a regime in which repeated interactions are not necessary to incent cooperation (as would be required for direct…

Social reputations facilitate cooperation: those who help others gain a good reputation, making them more likely to receive help themselves. But when people hold private views of one another, this cycle of indirect reciprocity breaks down,…

We propose a type system for a calculus of contracting processes. Processes can establish sessions by stipulating contracts, and then can interact either by keeping the promises made, or not. Type safety guarantees that a typeable process…

Cooperation is a crucial aspect of social life, yet understanding the nature of cooperation and how it can be promoted is an ongoing challenge. One mechanism for cooperation is indirect reciprocity. According to this mechanism, individuals…

I analyze long-term contracting in insurance markets with asymmetric information. The buyer privately observes her risk type, which evolves stochastically over time. A long-term contract specifies a menu of insurance policies, contingent on…