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Reputation under Direct and Indirect Reciprocity

In: The Vulnerability of Corporate Reputation: Leadership for Sustainable Long-Term Value

Author

Listed:
  • Peter Verhezen

    (MBS - University of Melbourne
    University of Antwerp
    IFC - World Bank Group, Asia Pacific
    IFC - World Bank Group, Asia Pacific)

Abstract

Repeated encounters as in direct reciprocity between the same individuals engender trustworthy behavior. However, under indirect reciprocity where people do not necessarily often meet each other, relationships and exchanges are built on the reputation of those participants. In others words, thanks to the power of reputation, we are willing to be involved with others or help others without expecting an immediate return. It seems that we ll behave less selfish when we know that we live in the shadow of the future, as expressed in our reputation. Having a good reputation carries quite some benefits for businesses or individuals.

Suggested Citation

  • Peter Verhezen, 2015. "Reputation under Direct and Indirect Reciprocity," Palgrave Macmillan Books, in: The Vulnerability of Corporate Reputation: Leadership for Sustainable Long-Term Value, chapter 2, pages 42-67, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-54737-8_3
    DOI: 10.1057/9781137547378_3
    as

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