Reputation in a public goods game: Taking the design of credit bureaus to the lab

Craig McIntosh, Elisabeth Sadoulet (), Steven Buck and Tomas Rosada

Journal of Economic Behavior & Organization, 2013, vol. 95, issue C, 270-285

Abstract: We present the results of a new laboratory experiment designed to mimic the ways in which credit bureaus will alter microfinance markets. Where loans are taken in groups, bureaus can build reputations for borrowers at the group or the individual level, and the optimal contract is not obvious. In a modified public goods game with ejection and re-assignment played by Guatemalan micro-entrepreneurs, we find the use of group reputation to be effective in increasing contributions. Given the costs of transitioning microfinance bureaus to the sharing of individual information, our results suggest that this change would not be cost effective.

Keywords: Information; Reputation; Public goods; Credit bureaus; Microfinance (search for similar items in EconPapers)
JEL-codes: C93 D71 D82 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:95:y:2013:i:c:p:270-285

DOI: 10.1016/j.jebo.2012.09.013

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