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REPUTATION EFFECTS WITH IMPERFECT MONITORING IN LINEAR-QUADRATIC MODELS

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UNSPECIFIED (1993) REPUTATION EFFECTS WITH IMPERFECT MONITORING IN LINEAR-QUADRATIC MODELS. OXFORD ECONOMIC PAPERS-NEW SERIES, 45 (1). pp. 42-57.

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Abstract

We solve lor the reputational equilibrium in a class of linear quadratic, gaussian dynamic games with noisy control. This equilibrium is particularly simple to describe and tractable. There is imperfect monitoring but a sequential equilibrium is found where the uninformed agents always smoothly learn the type of the informed agent. Reputation effects are temporary in the infinite horizon case for positive discount rates; as the discount factor tends to unity there is a permanent reputation.

Item Type: Journal Article
Subjects: H Social Sciences > HC Economic History and Conditions
Journal or Publication Title: OXFORD ECONOMIC PAPERS-NEW SERIES
Publisher: OXFORD UNIV PRESS UNITED KINGDOM
ISSN: 0030-7653
Official Date: January 1993
Dates:
DateEvent
January 1993UNSPECIFIED
Volume: 45
Number: 1
Number of Pages: 16
Page Range: pp. 42-57
Publication Status: Published

Data sourced from Thomson Reuters' Web of Knowledge

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