kaal:claim:3782210-005

Reputation converts a transaction from a single-stage zero-sum game into a repeated positive-sum game by holding out the promise of future business opportunities, so the value created is the improved reputation of both parties.

Reputation does this with the promise of future business opportunities. This changes the transaction from a single-stage zero-sum game into a repeated positive-sum game.

Craig Calcaterra, Wulf A. Kaal, The Importance of Reputation for the Evolution of Decentralization (2021), Chapter. Reputation, p. 2
https://ssrn.com/abstract=3782210 · source PDF

Craig Calcaterra, Wulf A. Kaal, The Importance of Reputation for the Evolution of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782210

• parties expect continued participation in the network

mechanismsupport: arguedreputationrisk-and-incentives

• restates kaal:claim:3782193-032 Adding reputation to the contracting game converts it from a single-stage zero-sum game into a repeated positi...
• extended_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...
• extends kaal:claim:3782193-031 Honesty would be the wrong strategy for an agent if the contract were anonymous and its resolution did not aff...
• restates 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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