Simple Bounds on the Value of a Reputation

Econometrica · 2011 · Volume 79 · Issue 5

Abstract

We introduce entropy techniques to study the classical reputation model in which a long-run player faces a series of short-run players. The long-run player's actions are possibly imperfectly observed. We derive explicit lower and upper bounds on the equilibrium payoffs to the long-run player.

Keywords

Reputation, repeated games, incomplete information, relative entropy

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