Building reputation vs. signaling state: How it impacts player payoffs
The article explores how a patient player's reputation affects their interactions with other players in a game. The patient player can either strategically choose their actions or commit to a specific action every time. The study shows that when the uninformed players' responses to commitment actions depend on the situation, the patient player's reputation can impact their payoff. In some cases, the patient player's payoff is higher when they commit to a specific action consistently. However, when the stage-game payoff functions follow a specific pattern, the patient player can achieve high payoffs in all situations. Overall, the study provides insights into how reputation and strategic choices influence outcomes in repeated interactions.