4.1 Reputation Formation in Competitive Settings

Most analytical and experimental studies of reputation formation in trading environments have made the assumption that the seller is a monopolist. The dynamics of reputation apparently change in interesting ways when there are several competing sellers. Heski Bar-Isaac presented some preliminary work on this topic [20]. His most striking finding was that competition changes reputational incentives in a non-monotonic manner: the power of reputation rises, then falls, then rises again as a market becomes more competitive. This is an interesting area where more analytical work in needed.

Advertisements

About Paul Resnick

Professor, University of Michigan School of Information Personal home page
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s