EconPapers    
Economics at your fingertips  
 

Variable temptations and black mark reputations

Christina Aperjis, Richard Zeckhauser and Yali Miao

Games and Economic Behavior, 2014, vol. 87, issue C, 70-90

Abstract: Reputations often guide sequential decisions to trust and to reward trust. We consider situations where each player is randomly matched with a partner in every period. One player – the truster – decides whether to trust. If trusted, the other player – the temptee – has a temptation to betray. The strength of temptation, private information to the temptee, varies across encounters. Betrayals are recorded as publicly known black marks. First, we identify equilibria when players only condition on the number of a temptee's black marks. Second, we show that conditioning on the number of interactions as well as on the number of black marks does not prolong trust. Third, we examine stochastic variations where black marks may be forgotten. Perhaps surprisingly, such variations do not improve outcomes. Fourth, when players condition on more general summary statistics of a temptee's past, we study equilibria where trust is suspended temporarily.

Keywords: Reputation; Trust; Reputation mechanisms; Ratings (search for similar items in EconPapers)
JEL-codes: C61 D82 D83 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0899825614000748
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Variable Temptations and Black Mark Reputations (2012) Downloads
Working Paper: Variable Temptations and Black Mark Reputations (2012) Downloads
Working Paper: Variable Temptations and Black Market Reputations (2011) Downloads
Working Paper: Variable Temptations and Black Mark Reputations (2011) Downloads
Working Paper: Variable Temptations and Black Mark Reputations (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:87:y:2014:i:c:p:70-90

DOI: 10.1016/j.geb.2014.04.003

Access Statistics for this article

Games and Economic Behavior is currently edited by E. Kalai

More articles in Games and Economic Behavior from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-19
Handle: RePEc:eee:gamebe:v:87:y:2014:i:c:p:70-90