Reputation formation with competitive investors

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Publication Details

Author(s): Abraham M, Grimm V, Neeß C, Seebauer M
Publication year: 2018
Language: English


Abstract

We investigate patterns
of information transmission and its effects on transfer and return rates in a standard
investment game where investors compete in a tournament and costless reputational
information about responders can be exchanged between individual investors within
a population but does not become public. We vary the nature of information that
could be transmitted (either a subjective rating or the objective details of a
transaction) and compare the level of information exchange to a treatment
without competition among investors. We find that competition among investors decreases
information transmission substantially and significantly, but the nature of
information only affects information transmission decisions without competition.
When investors compete they exhibit lower transfer rates and profits, while
responders return lower rates and are only able to significantly increase their
profits when information is objective. We find evidence that in a competitive environment
investors deliberately use subjective information to mislead their competitors.


FAU Authors / FAU Editors

Abraham, Martin Prof. Dr.
Grimm, Veronika Prof. Dr.
Lehrstuhl für Soziologie und Empirische Sozialforschung (Schwerpunkt Arbeitsmarktsoziologie)
Lehrstuhl für Volkswirtschaftslehre, insbesondere Wirtschaftstheorie
Neeß, Christina Dr.
Lehrstuhl für Empirische Wirtschaftssoziologie
Seebauer, Michael Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Wirtschaftstheorie


How to cite

APA:
Abraham, M., Grimm, V., Neeß, C., & Seebauer, M. (2018). Reputation formation with competitive investors.

MLA:
Abraham, Martin, et al. Reputation formation with competitive investors. 2018.

BibTeX: 

Last updated on 2019-10-04 at 21:38

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