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The Importance of Knowing Your Own Reputation

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Author Info

  • Matthias Greiff

    ()
    (University of Giessen)

  • Fabian Paetzel

    ()
    (University of Bremen)

Abstract

We experimentally investigate a ?nitely repeated public good game with varying partners. Within each period, participants are pairwise matched and contribute simultaneously. Participants are informed about contributions and each participant evaluates her partner’s contribution. At the beginning of the next period, participants are re-matched and, except for the two control treatments, receive information resulting from the previous period’s evaluations. There are three information treatments: Participants receive information either about their own evaluation or about their partner’s evaluation or both. Although participants condition their contributions on their partners’ evaluations, this information alone is insuf?cient to raise contributions. Only if participants also know their own evaluation, we do ?nd a signi?cant increase in contributions relative to the control treatments.

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File URL: http://www.uni-marburg.de/fb02/makro/forschung/magkspapers/36-2012_greiff.pdf
File Function: First version, 2012
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Bibliographic Info

Paper provided by Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) in its series MAGKS Papers on Economics with number 201236.

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Length: 23 pages
Date of creation: 2012
Date of revision:
Publication status: Forthcoming in
Handle: RePEc:mar:magkse:201236

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Related research

Keywords: Conditional Cooperation; Evaluation; Public Good Games; Prisoner’s Dilemma; Repeated games with varying partners; Reputation; Second-order beliefs.;

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References

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  1. Ben Greiner, 2004. "The Online Recruitment System ORSEE 2.0 - A Guide for the Organization of Experiments in Economics," Working Paper Series in Economics 10, University of Cologne, Department of Economics.
  2. Ananish Chaudhuri, 2011. "Sustaining cooperation in laboratory public goods experiments: a selective survey of the literature," Experimental Economics, Springer, vol. 14(1), pages 47-83, March.
  3. Masclet, D. & Noussair, C. & Tucker, S. & Villeval, M.C., 2001. "Monetary and Non-monetary Punishment in the Voluntary Contributions Mechanism," Purdue University Economics Working Papers 1141, Purdue University, Department of Economics.
  4. Bochet, Olivier & Putterman, Louis, 2009. "Not just babble: Opening the black box of communication in a voluntary contribution experiment," European Economic Review, Elsevier, vol. 53(3), pages 309-326, April.
  5. Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414, December.
  6. Gary Bornstein & Tamar Kugler & Anthony Ziegelmeyer, 2002. "Individual and Group Decisions in the Centipede Game: Are Groups More “Rational” Players?," Discussion Paper Series dp298, The Center for the Study of Rationality, Hebrew University, Jerusalem.
  7. Matthias Greiff & Fabian Paetzel, 2012. "Reaching for the Stars: An Experimental Study of the Consumption Value of Social Approval," MAGKS Papers on Economics 201208, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  8. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
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