Too Much of A Good Thing? - Archive ouverte HAL Accéder directement au contenu
Pré-Publication, Document De Travail Année : 2022

Too Much of A Good Thing?

Résumé

We consider a repeated game, in which due to private information and a lack of flexible transfers, cooperation cannot be sustained efficiently. In each round, the buyer either buys from the seller or takes an outside option. The fluctuating outside option may be public or private information. When the buyer visits, the seller chooses what quality to provide. We find that the buyer initially forgoes mutually beneficial trades before then visiting more often than he would like to, myopically. Under private information, the relationship recurrently undergoes gradual self-reinforcing downturns when trust is broken and instantaneous recoveries when loyalty is shown.
Fichier principal
Vignette du fichier
wp_tse_1327.pdf (710.55 Ko) Télécharger le fichier
Origine Fichiers produits par l'(les) auteur(s)

Dates et versions

hal-03632455 , version 1 (06-04-2022)

Identifiants

  • HAL Id : hal-03632455 , version 1

Citer

Johannes Hörner, Anna Sanktjohanser. Too Much of A Good Thing?. 2022. ⟨hal-03632455⟩
147 Consultations
22 Téléchargements

Partager

Gmail Mastodon Facebook X LinkedIn More