Reputation With Opportunities for Coasting

A-Tier
Journal: Journal of the European Economic Association
Year: 2021
Volume: 19
Issue: 1
Pages: 200-236

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

Reputation concerns can discipline agents and generate good outcomes. But what if outcomes are not always observed? Infrequent observation can strengthen reputation incentives and encourage effort. By exerting effort when outcomes are more likely observed, an agent can improve her reputation and gain by “coasting” on this reputation by shirking when the audience is less likely to be observing her actions. Opportunities to coast can in fact lead to greater overall effort than constant observation. We consider Markov information structures and characterize the observability structure that maximizes efficient effort.

Technical Details

RePEc Handle
repec:oup:jeurec:v:19:y:2021:i:1:p:200-236.
Journal Field
General
Author Count
2
Added to Database
2026-01-24