Reputation can be modeled as the idea that you have another ‘resource’ - that something like the number of promises you’ve made and the number you’ve kept (and their importance) is public knowledge.
When reputation is incorporated, agents compare the value of the $100 against the value of the reputation lost by doing so.
The problem could be easily changed to include ‘and you will lose no reputation, because no one thinks the driver is asking for a reasonable amount’ or ‘and you have p chance of losing r reputation worth u dollars’.
Reputation can be modeled as the idea that you have another ‘resource’ - that something like the number of promises you’ve made and the number you’ve kept (and their importance) is public knowledge.
When reputation is incorporated, agents compare the value of the $100 against the value of the reputation lost by doing so.
The problem could be easily changed to include ‘and you will lose no reputation, because no one thinks the driver is asking for a reasonable amount’ or ‘and you have p chance of losing r reputation worth u dollars’.