eprintid: 14578 rev_number: 37 eprint_status: archive userid: 600 dir: disk0/00/01/45/78 datestamp: 2009-02-25 11:08:55 lastmod: 2015-07-23 09:36:22 status_changed: 2009-02-25 11:08:55 type: working_paper metadata_visibility: show creators_name: Bohnet, I. creators_name: Harmgart, H. creators_name: Huck, S. creators_name: Tyran, J.R. creators_id: creators_id: creators_id: SHUCK00 creators_id: title: Learning trust ispublished: pub subjects: 12000 subjects: 13200 divisions: F24 keywords: JEL classification: C72, C91, L14 abstract: We examine the effects of different forms of feedback information on the performance of markets that suffer from moral hazard problems due to sequential exchange. As orthodox theory would predict, we find that providing buyers with information about sellers’ trading history boosts market performance. More surprisingly, this beneficial effect of incentives for reputation building is considerably enhanced if sellers, too, can observe other sellers’ trading history. This suggests that two-sided market transparency is an important ingredient for the design of well-functioning markets that are prone to moral hazard. date: 2004-09 publisher: ESRC Centre for Economic Learning and Social Evolution official_url: http://else.econ.ucl.ac.uk/newweb/papers.php vfaculties: VSHS oa_status: green language: eng primo: open primo_central: open_green lyricists_name: Huck, S lyricists_id: SHUCK00 full_text_status: public series: ELSE Working Papers number: 100 place_of_pub: London, UK citation: Bohnet, I.; Harmgart, H.; Huck, S.; Tyran, J.R.; (2004) Learning trust. (ELSE Working Papers 100). ESRC Centre for Economic Learning and Social Evolution: London, UK. Green open access document_url: https://discovery.ucl.ac.uk/id/eprint/14578/1/14578.pdf