FREE RIDING AND INCENTIVES TO INVEST IN THE REPUTATION OF AN ANONYMOUS GROUP

Authors

  • Dragan Filipovich Centro de Estudios Económicos, El Colegio de México, A. C.

DOI:

https://doi.org/10.21919/remef.v1i1.123

Keywords:

Group Reputation, s, Anonymity, and Random Matching

Abstract

This paper studies incentives to invest in "group reputation" when sorne agents are unable to recognize their partners from past interactions ( i. e., anonymity). lt does this by embedding the Kreps-Wilson (1982a) model of reputation and entry deterrence in a random-matching game (instead of just looking at isolated bilateral interactions). Examples are presented of how this affects investments in reputation under differing assumptions on how information is shared amongs agents.

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