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| Author: | Arend, R.J. |
| Title: | Reputation for cooperation: contingent benefits in alliance activity |
| Journal: | Strategic Management Journal
2009 : APR, VOL. 30:4, p. 371-385 |
| Index terms: | strategic management strategic planning alliances decision making co-operation reputation models |
| Freeterms: | partnerships |
| Language: | eng |
| Abstract: | This paper models the 2-firm alliance as an iterated prisoners' dilemma game with an exit option. Several theoretical predictions are tested in experimental studies as to the effect of reputation information. It is hypothesized that reputation benefits cooperation. However, based on experimental results, it is shown that reputation instead decreases cooperation. This result is explained by a contingency while remaining consistent with the general proposition of reputation as beneficial in games with incomplete information. |
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