Reputation Formation in Social Systems

Third party funded individual grant

Project Details

Project leader:
Prof. Dr. Veronika Grimm
Prof. Dr. Martin Abraham

Project members:
Dr. Michael Seebauer
Dr. Christina Neeß

Contributing FAU Organisations:
Lehrstuhl für Soziologie und Empirische Sozialforschung (Schwerpunkt Arbeitsmarktsoziologie)
Lehrstuhl für Volkswirtschaftslehre, insbesondere Wirtschaftstheorie

Funding source: DFG-Einzelförderung / Sachbeihilfe (EIN-SBH)
Start date: 01/04/2010
End date: 20/09/2012

Abstract (technical / expert description):

The project focuses on the question how reputation evolves in economic transactions. Oftentimes, business partners cannot rely on their own experience with their counterpart. Thus, the reputation of business partners plays a crucial role in many markets. While the effect of reputation has been the focus of many studies within this field of research, the present investigates the formation of reputation both theoretically and empirically. We are particularly interested in reputation that evolves in the direct interaction between business partners while institution-based reputation mechanisms (e.g. formal rankings on online platforms or media coverage) are deliberately excluded. On the basis of game theory and laboratory experiment we investigate the conditions that foster the formation of reputation and the circumstances that rather prevent their evolvement. In a second step, the results from the laboratory experiments will be validated with field data.


Abraham, M., & Grimm, V. (2017). Reputation in Wirtschaftsbeziehungen: Empirische Befunde. In Maurer, A. (Eds.), Handbuch der Wirtschaftssoziologie. (pp. 257-274). Wiesbaden: Springer VS.
Abraham, M., Grimm, V., Neeß, C., & Seebauer, M. (2016). Reputation formation in economic transactions. Journal of Economic Behavior & Organization, 121, 1-14.

Last updated on 2018-22-11 at 19:20