ABSTRACT
Chapter 7 explores the ways in which incomplete information leads to the appearance of reputation mechanisms. From ancient times until the present, the reputation mechanism has been one of the most important protections of social cooperation. When information is incomplete, people have an incentive based on their own interests to establish a reputation to willingly cooperate. It is precisely because people care about reputation do we see mutual trust. We utilize the reputation mechanism to explain certain interesting phenomena in reality and discuss how reputation is built.
