# kaal:claim:3782210-005

**Claim.** 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.

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

**Holds when.**

- parties expect continued participation in the network

**Source quote.**

> 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.

**From.** Craig Calcaterra, Wulf A. Kaal, *The Importance of Reputation for the Evolution of Decentralization* (2021), Chapter. Reputation, page 2

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

**Verify.** sha256 of source PDF `9cc531ab239f6266c8aeddcc8e54f4c06029c44e825444bee137bbcc0c9d0a8e` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202021%20-%20The%20Importance%20of%20Reputation%20for%20the%20Evolution%20of%20Decentralization.pdf

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

**Keywords.** reputation, repeated-games, positive-sum, incentives

**Related claims.**

- restates: https://wulfkaal.github.io/claims/3782193-032
- extended_by: https://wulfkaal.github.io/claims/3782214-001
- extends: https://wulfkaal.github.io/claims/3441904-043
- extends: https://wulfkaal.github.io/claims/3782193-031
- restates: 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.