The problem with the strategy of achieving credibility through reputation is that
A)reputations are rarely credible.
B)reputations lack any commitment.
C)serious costs may be incurred during the period in which reputation is established.
D)rules always have a lower cost than reputations in maintaining credibility.

Question

Quizplus · Accepted Answer

The strategy of achieving credibility through reputation may lead to incurring serious costs during the period in which reputation is established. This is because building a reputation requires consistent behavior and adherence to certain principles, which may be expensive or time-consuming in the short term. Additionally, reputations can be fragile and easily damaged, meaning that a mistake or misstep can undermine the credibility that has been built up through reputation.

The Problem with the Strategy of Achieving Credibility Through Reputation