IDEAS home Printed from https://ideas.repec.org/p/ecl/harjfk/rwp03-048.html
   My bibliography  Save this paper

Repetition and Reputation: Implications for Trust and Trustworthiness in the Short and in the Long Run

Author

Listed:
  • Bohnet, Iris

    (Harvard U)

  • Huck, Steffen

    (U College London)

Abstract

Repeat transactions are not necessarily the rule in today's global economy. Indirect reputation systems, where buyers base their decisions on a seller's previous interactions with other buyers, are a potential substitute for personal interactions - provided such information is available. This paper examines experimentally to what degree indirect reputation building substitutes for direct reputation building in repeat interactions in the short run and analyzes the effects these environments have on behavior in the long run. We find that repeat interactions are the most effective institutional arrangement to foster trust and trustworthiness in the short and in the long run.

Suggested Citation

  • Bohnet, Iris & Huck, Steffen, 2003. "Repetition and Reputation: Implications for Trust and Trustworthiness in the Short and in the Long Run," Working Paper Series rwp03-048, Harvard University, John F. Kennedy School of Government.
    • Handle: RePEc:ecl:harjfk:rwp03-048
    as

    Download full text from publisher

    File URL: https://research.hks.harvard.edu/publications/getFile.aspx?Id=103
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kreps, David M. & Milgrom, Paul & Roberts, John & Wilson, Robert, 1982. "Rational cooperation in the finitely repeated prisoners' dilemma," Journal of Economic Theory, Elsevier, vol. 27(2), pages 245-252, August.
    2. Andreoni, James, 1988. "Why free ride? : Strategies and learning in public goods experiments," Journal of Public Economics, Elsevier, vol. 37(3), pages 291-304, December.
    3. Erev, Ido & Roth, Alvin E, 1998. "Predicting How People Play Games: Reinforcement Learning in Experimental Games with Unique, Mixed Strategy Equilibria," American Economic Review, American Economic Association, vol. 88(4), pages 848-881, September.
    4. Croson, Rachel T. A., 1996. "Partners and strangers revisited," Economics Letters, Elsevier, vol. 53(1), pages 25-32, October.
    5. Paul Resnick & Richard Zeckhauser & John Swanson & Kate Lockwood, 2006. "The value of reputation on eBay: A controlled experiment," Experimental Economics, Springer;Economic Science Association, vol. 9(2), pages 79-101, June.
    6. Andreoni, James & Croson, Rachel, 2008. "Partners versus Strangers: Random Rematching in Public Goods Experiments," Handbook of Experimental Economics Results, in: Charles R. Plott & Vernon L. Smith (ed.), Handbook of Experimental Economics Results, edition 1, volume 1, chapter 82, pages 776-783, Elsevier.
    7. Ernst Fehr & Simon Gaechter, "undated". "Do Incentive Contracts Crowd out Voluntary Cooperation?," IEW - Working Papers 034, Institute for Empirical Research in Economics - University of Zurich.
    8. Bohnet, Iris & Frey, Bruno S. & Huck, Steffen, 2001. "More Order with Less Law: On Contract Enforcement, Trust, and Crowding," American Political Science Review, Cambridge University Press, vol. 95(1), pages 131-144, March.
    9. Andereoni, J., 1988. "Why Free Ride? Strategies And Learning In Public Goods Experiments," Working papers 375, Wisconsin Madison - Social Systems.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kanagaretnam, Kiridaran & Mestelman, Stuart & Nainar, S.M. Khalid & Shehata, Mohamed, 2010. "Trust and reciprocity with transparency and repeated interactions," Journal of Business Research, Elsevier, vol. 63(3), pages 241-247, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ernesto Reuben & Sigrid Suetens, 2012. "Revisiting strategic versus non-strategic cooperation," Experimental Economics, Springer;Economic Science Association, vol. 15(1), pages 24-43, March.
    2. repec:tiu:tiucen:200922 is not listed on IDEAS
    3. repec:dgr:kubcen:200922 is not listed on IDEAS
    4. Guillen, Pablo & Fatas, Enrique & Brañas-Garza, Pablo, 2010. "Inducing efficient conditional cooperation patterns in public goods games, an experimental investigation," Journal of Economic Psychology, Elsevier, vol. 31(6), pages 872-883, December.
    5. repec:dgr:kubcen:200833 is not listed on IDEAS
    6. repec:tiu:tiucen:200833 is not listed on IDEAS
    7. Simon P Anderson & Jacob K Goeree & Charles A Holt, 2001. "A Thoeretical Anlysis of Altruism and Decision Error in Public Goods Games," Levine's Working Paper Archive 563824000000000075, David K. Levine.
    8. Talbot Page & Louis Putterman & Bulent Unel, 2005. "Voluntary Association in Public Goods Experiments: Reciprocity, Mimicry and Efficiency," Economic Journal, Royal Economic Society, vol. 115(506), pages 1032-1053, October.
    9. Takehisa Kumakawa & Tatsuyoshi Saijo & Takehiko Yamato, 2015. "Isolating and identifying motivations: A voluntary contribution mechanism experiment with interior Nash equilibria," Working Papers SDES-2015-16, Kochi University of Technology, School of Economics and Management, revised Mar 2015.
    10. Arifovic, Jasmina & Ledyard, John, 2012. "Individual evolutionary learning, other-regarding preferences, and the voluntary contributions mechanism," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 808-823.
    11. Cox, Caleb A. & Stoddard, Brock, 2018. "Strategic thinking in public goods games with teams," Journal of Public Economics, Elsevier, vol. 161(C), pages 31-43.
    12. Ralph-C. Bayer & Elke Renner & Rupert Sausgruber, 2013. "Confusion and learning in the voluntary contributions game," Experimental Economics, Springer;Economic Science Association, vol. 16(4), pages 478-496, December.
    13. Simon Gaechter & Benedikt Herrmann, 2008. "Reciprocity, culture, and human cooperation: Previous insights and a new cross-cultural experiment," Discussion Papers 2008-14, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    14. Charles Figuières & David Masclet & Marc Willinger, 2013. "Weak Moral Motivation Leads to the Decline of Voluntary Contributions," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 15(5), pages 745-772, October.
    15. David Masclet & Charles Noussair & Steven Tucker & Marie-Claire Villeval, 2003. "Monetary and Nonmonetary Punishment in the Voluntary Contributions Mechanism," American Economic Review, American Economic Association, vol. 93(1), pages 366-380, March.
    16. Sääksvuori, Lauri, 2013. "Voluntary formation of centralized sanctioning institutions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 44(C), pages 150-159.
    17. Stephen Schott & Neil Buckley & Stuart Mestelman & R. Andrew Muller, 2002. "Output Sharing Among Groups Exploiting Common Pool Resources," Department of Economics Working Papers 2002-06, McMaster University.
    18. Ben-Ner, Avner & Hu, Fangtingyu, 2021. "Lying in a finitely repeated game," Economics Letters, Elsevier, vol. 201(C).
    19. Rafael Rob & Peter Zemsky, 2002. "Social Capital, Corporate Culture, and Incentive Intensity," RAND Journal of Economics, The RAND Corporation, vol. 33(2), pages 243-257, Summer.
    20. Botelho, Anabela & Harrison, Glenn W. & Pinto, Lígia M. Costa & Rutström, Elisabet E., 2009. "Testing static game theory with dynamic experiments: A case study of public goods," Games and Economic Behavior, Elsevier, vol. 67(1), pages 253-265.3, September.
    21. Irlenbusch, Bernd & Ruchala, Gabriele K., 2006. "Relative Rewards within Team-Based Compensation," IZA Discussion Papers 2423, Institute of Labor Economics (IZA).
    22. Simon Gaechter & Benedikt Herrmann, 2008. "Reciprocity, culture, and human cooperation: Previous insights and a new cross-cultural experiment," Discussion Papers 2008-14, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    23. Ananish Chaudhuri, 2011. "Sustaining cooperation in laboratory public goods experiments: a selective survey of the literature," Experimental Economics, Springer;Economic Science Association, vol. 14(1), pages 47-83, March.
    24. Irlenbusch, Bernd & Ruchala, Gabriele K., 2008. "Relative rewards within team-based compensation," Labour Economics, Elsevier, vol. 15(2), pages 141-167, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecl:harjfk:rwp03-048. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ksharus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.