Abstract: International audience; Reputation mechanisms are mainly based on information sharing by traders about private trading experience. Each trader can therefore rely on his own past experience as a trader and on other traders’ past experience. The former is the direct component of the reputation mechanism and the latter the indirect component (Bolton et al., 2004a and Bolton et al., 2004b). We design an experiment for isolating the direct component of the reputation system and studying its effect on the level of trust and reciprocity in a populat...
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Topics: 
Microeconomics
Social psychology