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Endogenous Reputation Formation: Cooperation and Identity under the Shadow of the Future

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  • Kamei, Kenju

Abstract

People are interacting more with strangers thanks to recent technological advancement in online platforms. Online interactions can be characterized by infinitely-repeated games. Recent studies have shown that institutions that make people’s decisions open to others may enhance cooperation in these situations. But it is still unknown whether people can successfully cooperate with each other by choosing to show their identities and building good reputation when there is an option to hide them. We deal with this question using an experimental laboratory. Our experiment shows that a non-negligible fraction of people conceal their identities and people fail to cooperate with each other if hiding identities is free. However, almost all show their identities and successfully achieve cooperation with their partners if a small explicit cost is charged for act of hiding.

Suggested Citation

  • Kamei, Kenju, 2015. "Endogenous Reputation Formation: Cooperation and Identity under the Shadow of the Future," MPRA Paper 61657, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:61657
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    Cited by:

    1. Kamei, Kenju, 2016. "Information Disclosure and Cooperation in a Finitely-repeated Dilemma: Experimental Evidence," MPRA Paper 75100, University Library of Munich, Germany.

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    More about this item

    Keywords

    experiment; cooperation; reputation; prisoner dilemma game; internet; infinitely-repeated games;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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