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The role of communication content and reputation in the choice of transaction partners : a study based on field and laboratory data
Citation Link: https://doi.org/10.15480/882.4663
Publikationstyp
Journal Article
Date Issued
2018-07-31
Sprache
English
Author(s)
TORE-DOI
TORE-URI
Journal
Volume
112
Start Page
49
End Page
66
Citation
Games and Economic Behavior 112: 49-66 (2018-11)
Publisher DOI
Scopus ID
Publisher
Elsevier
We study the effects of communication content and its interaction with reputation on the choice of transaction partners in markets with moral hazard. We find that buyers’ choices of sellers are influenced by prices and reputation information as well as by sellers’ messages: buyers prefer sellers who make specific promises. If specific promises are infeasible, buyers prefer sellers whose arguments reduce the social distance. These observations do not depend on the availability of reputation information. We also find that, if specific promises are feasible, buyers’ profits do not significantly differ from hypothetical profits realized under a correct expectations rule.
Subjects
Communication
Moral hazard
Procurement auctions
Promises
Reputation
Social distance
DDC Class
300: Sozialwissenschaften, Soziologie
330: Wirtschaft
Publication version
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