kaal:claim:3782193-032

Adding reputation to the contracting game converts it from a single-stage zero-sum game into a repeated positive-sum game in which the rest of the community becomes relevant, because reputation is a future-oriented commodity that pays off with the promise of future contracts.

By adding reputation to the game, it becomes a repeated game, and the rest of the community becomes relevant. Reputation is a future-oriented commodity, which pays off profits with the promise of future contracts. Now the game is a repeated game which is positive-sum.

Craig Calcaterra, Wulf A. Kaal, Historical Sketches of Centralization vs. Decentralization (2021), Maghribi traders’ solution, p. 26
https://ssrn.com/abstract=3782193 · source PDF

Craig Calcaterra, Wulf A. Kaal, Historical Sketches of Centralization vs. Decentralization (2021). SSRN: https://ssrn.com/abstract=3782193

• networks where reputation is observable and policed by the community

mechanismsupport: arguedreputationeconomicsrisk-and-incentives

• restated_by kaal:claim:3782210-005 Reputation converts a transaction from a single-stage zero-sum game into a repeated positive-sum game by holdi...
• restated_by kaal:claim:3782214-001 Reputation changes the incentive structure of a decentralized organization from a single stage, zero sum game ...
• extends kaal:claim:3441904-043 Reputation based DAO governance turns a zero sum game into a positive sum game, because members are given ince...
• supported_by kaal:claim:3782203-024 If the decentralized economy is constructed as a zero-sum game, cooperation becomes impossible because the onl...
• restated_by kaal:claim:3782205-021 Reputation rather than money is the proper motivator of good behavior in business and governance, because prop...

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