Reputation and Competition

I consider repeated games with both moral hazard and adverse selection where a continuum of agents compete. It is shown that equilibria with reputation -where high effort is always exerted- may be sustained under imperfect information; the existence of such equilibria contradicts the standard results without competition. An explicit characterization of these equilibria is provided, as a discussion of the role of the environment.

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Paper Number
99-02
Year
1999
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