Reputation When Threats and Transfers Are Available

B-Tier
Journal: Journal of Economics & Management Strategy
Year: 2007
Volume: 16
Issue: 3
Pages: 577-598

Score contribution per author:

0.673 = (α=2.02 / 3 authors) × 1.0x B-tier

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

Abstract

We present a model where a long run player is allowed to use both money transfers and threats to influence the decisions of a sequence of short run players. We show that threats might be used credibly (even in arbitrarily short repeated games) by a long‐lived player who gains by developing a reputation of carrying out punishments. Particular cases of the model are a long‐lived pressure group offering rewards and punishments to a series of targets (public or corporate officials) in exchange for policy favors, or that of a long‐lived extorter who demands money in order not to punish. We use the model to analyze the “convicted nonpayor” debate around judicial corruption. The model highlights formal similarities between lobbying and extortion.

Technical Details

RePEc Handle
repec:bla:jemstr:v:16:y:2007:i:3:p:577-598
Journal Field
Industrial Organization
Author Count
3
Added to Database
2026-01-25