Honest Equilibria in Reputation Games: The Role of Time Preferences

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2018
Volume: 10
Issue: 1
Pages: 278-314

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

New relationships are often plagued with uncertainty because one of the players has some private information about her "type." The reputation literature has shown that equilibria that reveal this private information typically involve breach of trust and conflict. But are these inevitable for equilibrium learning? I analyze self-enforcing relationships where one party is privately informed about her time preferences. I show that there always exist honest reputation equilibria, which fully reveal information and support cooperation without breach or conflict. I compare these to dishonest reputation equilibria from several perspectives. My results are applicable to a broad class of repeated games.

Technical Details

RePEc Handle
repec:aea:aejmic:v:10:y:2018:i:1:p:278-314
Journal Field
General
Author Count
1
Added to Database
2026-01-25