Reputation in Long-Run Relationships

S-Tier
Journal: Review of Economic Studies
Year: 2012
Volume: 79
Issue: 2
Pages: 451-480

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We model a long-run relationship as an infinitely repeated game played by two equally patient agents. In each period, the agents play an extensive-form stage game of perfect information with either locally non-conflicting interests or strictly conflicting interests. There is incomplete information about the type of Player 1, while Player 2's type is commonly known. We show that a sufficiently patient Player 1 can leverage Player 2's uncertainty about his type to secure his highest pay-off, compatible with Player 2's individual rationality, in any perfect Bayesian equilibrium of the repeated game. Copyright 2012, Oxford University Press.

Technical Details

RePEc Handle
repec:oup:restud:v:79:y:2012:i:2:p:451-480
Journal Field
General
Author Count
2
Added to Database
2026-01-24