Simple bounds on the value of a reputation
Gossner, O.
(2011).
Simple bounds on the value of a reputation.
Econometrica,
79(5), 1627-1641.
https://doi.org/10.3982/ECTA9385
(2011).
Simple bounds on the value of a reputation.
Econometrica,
79(5), 1627-1641.
https://doi.org/10.3982/ECTA9385
We introduce entropy techniques to study the classical reputation model in which a long-run player faces a series of short-run players. The long-run player's actions are possibly imperfectly observed. We derive explicit lower and upper bounds on the equilibrium payoffs to the long-run player.