Group Reputations - An Experimental Foray

Arbeitspapier

Often information structures are such that while individual reputation building is impossible groups of agents would have the possibility of building up a reputation. We experimentally examine whether groups of sellers in markets that suffer from moral hazard are able to build up reputations and, thus, avoid market breakdown. We contrast our findings with situations where sellers alternatively can build up an individual reputation or where there are no possibilities for reputation building at all. Our results offer a rather optimistic outlook on group reputations. Even though each seller only receives some of the reputation benefits of withstanding short-run incentives, sellers are able to overcome the dilemma and successfully exploit the information structure.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ifo Working Paper ; No. 51

Classification and Topics

• Classification: Wirtschaft ; Noncooperative Games ; Design of Experiments: Laboratory, Group Behavior ; Market Structure, Pricing, and Design: General ; Transactional Relationships; Contracts and Reputation; Networks
• Subject: Trust ; group reputations ; moral hazard ; information conditions

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Huck, Steffen ; Lünser, Gabriele K.
• Event: Veröffentlichung
• (who): ifo Institute - Leibniz Institute for Economic Research at the University of Munich
• (where): Munich
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/73811
• Last update: 10.03.2025, 11:43 AM CET