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Reputation (Strategic)

A track record of past behavior that lets other parties predict future behavior without a court or contract to enforce it. Reputation only disciplines behavior when the relationship is expected to continue, information about past behavior can travel to future partners, and the parties care enough about future payoffs to sacrifice present gain for them — remove any one condition and the mechanism collapses.

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Vocabulary from all courses. Terms are cross-referenced to show where each concept appears.