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 |
|---|---|
| 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 |