Related papers: Reputation Effects with Endogenous Records
We study a class of finite-action disclosure games in which the sender's preferences are state-independent and the receiver's optimal action depends only on the expected state. While receiver-preferred equilibria in these games involve full…
Kyle (1985) builds a pioneering and influential model, in which an insider with long-lived private information submits an optimal order in each period given the market maker's pricing rule. An inconsistency exists to some extent in the…
Keeping a high reputation, by contributing to common efforts, plays a key role in explaining the evolution of collective cooperation among unrelated agents in a complex society. Nevertheless, it is not necessarily an individual feature, but…
Free riding is a major problem in peer-to-peer networks. Reputation management systems are generally proposed to overcome this problem. In this paper we have discussed a possible way of resource allocation on the basis of reputation…
This paper initiates the study of the testable implications of choice data in settings where agents have privacy preferences. We adapt the standard conceptualization of consumer choice theory to a situation where the consumer is aware of,…
We propose a continuum model for the description of buyer and seller dynamics in an Internet market. The relevant variables are the research effort of buyers and the sellers' reputation building process. We show that, if a commercial…
We study the emergence of conformity preferences in an environment in which agents choose effort under heterogeneous, possibly misspecified returns, and social interactions do not directly affect material payoffs. Some agents choose effort…
Reputation systems concern soft security dynamics in diverse areas. Trust dynamics in a reputation system should be stable and adaptable at the same time to serve the purpose. Many reputation mechanisms have been proposed and tested over…
The performance of an energy system under a real-time pricing mechanism depends on the consumption behavior of its customers, which involves uncertainties. In this paper, we consider a system operator that charges its customers with a…
A fundamental component in the theoretical school choice literature is the problem a student faces in deciding which schools to apply to. Recent models have considered a set of schools of different selectiveness and a student who is unsure…
Retention campaigns in customer relationship management often rely on churn prediction models evaluated using traditional metrics such as AUC and F1-score. However, these metrics fail to reflect financial outcomes and may mislead strategic…
Human cooperation depends on indirect reciprocity. In this work, we explore the concept of indirect reciprocity using a donation game in an infinitely large population. In particular, we examine how updating the reputations of recipients…
This paper examines customer momentum, defined as a positive relationship between a firm's returns and past returns of its customers. I confirm previous evidence (Cohen and Frazzini 2008) that customer momentum is both statistically and…
We study a model of innovation with a large number of firms that create new technologies by combining several discrete ideas. These ideas are created via private investment and spread between firms. Firms face a choice between secrecy,…
We study interactions with uncertainty about demand sensitivity. In our solution concept (1) firms choose seemingly-optimal strategies given the level of sophistication of their data analytics, and (2) the levels of sophistication form best…
This paper studies a dynamic model of information acquisition, in which information might be secretly manipulated. A principal must choose between a safe action with known payoff and a risky action with uncertain payoff, favoring the safe…
Originating in evolutionary game theory, the class of "zero-determinant" strategies enables a player to unilaterally enforce linear payoff relationships in simple repeated games. An upshot of this kind of payoff constraint is that it can…
Social and professional networks affect labor market dynamics, knowledge diffusion and new business creation. To understand the determinants of how these networks are formed in the first place, we analyze a unique dataset of business cards…
Cooperation underlies many natural and artificial systems. While voluntary participation can sustain cooperation without informational assumptions, real interactions are rarely anonymous, leaving the joint effects of participation and…
We propose a new notion of credibility for Bayesian persuasion problems. A disclosure policy is credible if the sender cannot profit from tampering with her messages while keeping the message distribution unchanged. We show that the…