Is Reputation Good or Bad? An Experiment

Brit Grosskopf and Rajiv Sarin

American Economic Review, 2010, vol. 100, issue 5, 2187-2204

Abstract: We investigate the impact of reputation in a laboratory experiment. We do so by varying whether the past choices of a long-run player are observable by the short-run players. Our framework allows for reputation to have either a beneficial or a harmful effect on the long-run player. We find that reputation is seldom harmful and its beneficial effects are not as strong as theory suggests. When reputational concerns are at odds with other-regarding preferences, we find th latter overwhelm the former. (JEL C91, D12, D82, D83, Z13)

Date: 2010
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Citations: View citations in EconPapers (49)

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