The Reputational Budget and its Uses

Lucio Picci

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: I introduce the concept of the reputational budget, to consider its possible uses within a Reputation-based Governance (Rebag) framework. The concept is illustrated using an application to the management of public works, where firms help public administrations in building public infrastructure. The reputational budget has several interesting applications. In particular, it provides objective criteria to use reputational information in public procurement, and it may alleviate the moral hazard problem that arises in the life-cycle of bureaucrats.

Date: 2007-04
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Persistent link: https://EconPapers.repec.org/RePEc:bol:bodewp:587

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