# kaal:claim:3782193-032

**Claim.** 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.

**Type.** mechanism  **Support.** argued

**Holds when.**

- networks where reputation is observable and policed by the community

**Source quote.**

> 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.

**From.** Craig Calcaterra, Wulf A. Kaal, *Historical Sketches of Centralization vs. Decentralization* (2021), Maghribi traders’ solution, page 26

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

**Verify.** sha256 of source PDF `74df9cc9a19a098bdacd0424a4174795f6e184f7a31c8ee7541195186701ebd2` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202021%20-%20Historical%20Sketches%20of%20Centralization%20vs.%20Decentralization.pdf

**Topics.** reputation, economics, risk-and-incentives

**Keywords.** reputation, game-theory, repeated-games, positive-sum, incentive-design

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/3782210-005
- restated_by: https://wulfkaal.github.io/claims/3782214-001
- extends: https://wulfkaal.github.io/claims/3441904-043
- supported_by: https://wulfkaal.github.io/claims/3782203-024
- restated_by: https://wulfkaal.github.io/claims/3782205-021

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.