LEARNING TRUST

Autor(en)
Iris Bohnet, Steffen Huck, Jean-Robert Tyran
Abstrakt

We examine the effects of different forms of feedback information on the performance of markets that suffer from moral hazard problems due to sequential exchange. As orthodox theory would predict, we find that providing buyers with information about sellers' trading history boosts market performance. More surprisingly, this beneficial effect of incentives for reputation building is considerably enhanced if sellers, too, can observe other sellers' trading history. This suggests that two-sided market transparency is an important ingredient for the design of well-functioning markets that are prone to moral hazard.

Organisation(en)
Institut für Volkswirtschaftslehre, Wiener Zentrum für Experimentelle Wirtschaftsforschung
Externe Organisation(en)
Harvard University, University College London
Journal
Journal of the European Economic Association
Band
3
Seiten
322-329
Anzahl der Seiten
8
ISSN
1542-4766
DOI
https://doi.org/10.1162/jeea.2005.3.2-3.322
Publikationsdatum
2005
Peer-reviewed
Ja
ÖFOS 2012
502045 Verhaltensökonomie
Link zum Portal
https://ucris.univie.ac.at/portal/de/publications/learning-trust(c6b486c2-d154-4f42-8d0b-1162a667105a).html