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 the latter overwhelm the former.
Original language | English |
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Pages (from-to) | 2187-2204 |
Number of pages | 18 |
Journal | The American Economic Review |
Volume | 100 |
Issue number | 5 |
DOIs | |
Publication status | Published - 1 Dec 2010 |