Is Reputation Good or Bad? An Experiment
American Economic Review · 2010 · Volume 100 · Issue 5
Abstract
We investigate the impact of reputation in a laboratory experiment. We do so by varying whether the past choices of a long-run player are observable by the short-run players. Our framework allows for reputation to have either a beneficial or a harmful effect on the long-run player. We find that reputation is seldom harmful and its beneficial effects are not as strong as theory suggests. When reputational concerns are at odds with other-regarding preferences, we find th latter overwhelm the former. (JEL C91, D12, D82, D83, Z13)
Keywords
Design of Experiments: Laboratory, Individual, Consumer Economics: Empirical Analysis, Asymmetric and Private Information, Search, Learning, Information and Knowledge, Communication, Belief, Economic Sociology, Economic Anthropology, Social and Economic Stratification
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