Publication Type

Working Paper

Version

publishedVersion

Publication Date

3-2015

Abstract

Unlike in small communities where one can strategically interact with another according to the latter’s individual reputation, players in complex societies often have to interact with strangers whose individual reputations cannot be easily acquired. They often have to infer their counterparts’ characteristics from the latters’ group reputation to simplify decision making. We provide a game theoretical model of reputation matching concerning corruption during social transformation. We show that the regime change from acquaintance matching to anonymous matching tends to cause rampant corruption and the effectiveness of anti-corruption policies is non-monotonic with respect to the supervision efforts.

Keywords

Social Transformation, Group Reputation, Reputation Matching, Corruption

Discipline

Behavioral Economics | Economics

Research Areas

Applied Microeconomics

First Page

1

Last Page

31

Copyright Owner and License

Authors

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