Cooperation among strangers with limited information about reputation

Nonfiction, Social & Cultural Studies, Social Science
Cover of the book Cooperation among strangers with limited information about reputation by Julia Mattausch, GRIN Publishing
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Julia Mattausch ISBN: 9783638024846
Publisher: GRIN Publishing Publication: March 19, 2008
Imprint: GRIN Publishing Language: English
Author: Julia Mattausch
ISBN: 9783638024846
Publisher: GRIN Publishing
Publication: March 19, 2008
Imprint: GRIN Publishing
Language: English

Essay from the year 2007 in the subject Sociology - Individual, Groups, Society, grade: 1,7, Friedrich-Alexander University Erlangen-Nuremberg, 3 entries in the bibliography, language: English, abstract: Today, nearly all organizations have to negotiate and cooperate with 'strangers', that means with trading partners (individuals or organizations) of which none or few informa-tion is available. One reason is the increasing trade and communication via internet in or-ganizations. But also in private transactions we often have to deal or to cooperate with un-known individuals, for example in the case of buying something on Ebay or similar online-portals. The amount of institutional intervention which is necessary to ensure efficient co-operation in markets and organizations, in circumstances where interactions take place among essentially strangers, depends critically on the amount of information informal reputation mechanisms need to transmit (Bolton et al., 2004). One important factor to enforce cooperation in small groups or in information-tracking organizations is reputation. When you think for example of credit-agencies, the willingness to afford a loan increases with the amount of information and reputation of the customer - of course the information has to fit the existing terms. In contrast, the effectiveness of reputation in circumstances where persons are essentially strangers, knowing about one another only through word-of-mouth, is far less certain. The issue is important because word-of-mouth mechanisms are typically less costly than formal institutional interventions such as legal contracts. The central question to be answered in the presented experiment of Bolton, G. E. et al. (2004) is what information is necessary about reputation to support cooperative effort among strangers. The experiment indicates that even without any reputation information there is an amount of cooperation that is, however, influenced by the cooperation costs. For high costs, providing information about a partner's immediate past action increases coop-eration. Recursive information about the partners' previous partners' reputation further promotes cooperation, regardless of the cooperation costs.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Essay from the year 2007 in the subject Sociology - Individual, Groups, Society, grade: 1,7, Friedrich-Alexander University Erlangen-Nuremberg, 3 entries in the bibliography, language: English, abstract: Today, nearly all organizations have to negotiate and cooperate with 'strangers', that means with trading partners (individuals or organizations) of which none or few informa-tion is available. One reason is the increasing trade and communication via internet in or-ganizations. But also in private transactions we often have to deal or to cooperate with un-known individuals, for example in the case of buying something on Ebay or similar online-portals. The amount of institutional intervention which is necessary to ensure efficient co-operation in markets and organizations, in circumstances where interactions take place among essentially strangers, depends critically on the amount of information informal reputation mechanisms need to transmit (Bolton et al., 2004). One important factor to enforce cooperation in small groups or in information-tracking organizations is reputation. When you think for example of credit-agencies, the willingness to afford a loan increases with the amount of information and reputation of the customer - of course the information has to fit the existing terms. In contrast, the effectiveness of reputation in circumstances where persons are essentially strangers, knowing about one another only through word-of-mouth, is far less certain. The issue is important because word-of-mouth mechanisms are typically less costly than formal institutional interventions such as legal contracts. The central question to be answered in the presented experiment of Bolton, G. E. et al. (2004) is what information is necessary about reputation to support cooperative effort among strangers. The experiment indicates that even without any reputation information there is an amount of cooperation that is, however, influenced by the cooperation costs. For high costs, providing information about a partner's immediate past action increases coop-eration. Recursive information about the partners' previous partners' reputation further promotes cooperation, regardless of the cooperation costs.

More books from GRIN Publishing

Cover of the book Ethics in Management Consulting by Julia Mattausch
Cover of the book Laura Mulvey, Visual Pleasure and Narrative Cinema by Julia Mattausch
Cover of the book Analisis de la Carta sobre el Humanismo de Heidegger by Julia Mattausch
Cover of the book Leadership & Change - How to implement change in an all-male & all-scientist team? by Julia Mattausch
Cover of the book Social Feed Reader - Specification of a prototype by Julia Mattausch
Cover of the book Konzeptionelle Entwicklung eines Kennzahlenpools für ein Einzelhandelsunternehmen mittels der SAP Business Information Warehouse Technologie by Julia Mattausch
Cover of the book Death and Initiation in 'The Short Happy Life of Francis Macomber' and 'The Snows of Kilimanjaro' by Ernest Hemingway by Julia Mattausch
Cover of the book Investing in Commodities by Julia Mattausch
Cover of the book Ethical business in the global economy by Julia Mattausch
Cover of the book Die GmbH-Reform im Jahr 2008 by Julia Mattausch
Cover of the book Social Media Marketing by Julia Mattausch
Cover of the book Experiences of men and women in texas by Julia Mattausch
Cover of the book Repräsentation von Herrschaft im Mittelalter by Julia Mattausch
Cover of the book Portrait of a mother in Tennessee Williams' memory play 'The Glass Menagerie' by Julia Mattausch
Cover of the book Role and Function of Stock Markets by Julia Mattausch
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy