causal

Reputation Mechanisms Curb Opportunistic Behavior

Platforms like Airbnb are cleverly designed to give users strong incentives for honest behavior: a renter who trashes an apartment will be known to the website and penalized by being barred from future use, which solves the opportunistic-behavior problem that would otherwise make such peer-to-peer transactions infeasible.

causalpending

Speaker

Joel Mokyr

Evidence Quote

if I do then the website will know and they will penalize me by not letting me ever use it ever again

Source

Joel Mokyr on Growth, Innovation, and StagnationEconTalk
Created: 6/13/2026, 12:12:21 AM

My Notes

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