Nattavudh Powdthavee, Yohanes E. Riyanto, Jack L. Knetsch, 18 May 2017

Economists are judged on both the number of times they publish and where they publish. Yet very little is known about the impact on reputation of including lower-rated journals in an author’s list of publications. This column presents evidence that including these publications has a negative impact on judgements of the author’s contribution by other economists. To the extent that such judgements may influence research and publication strategies, the findings imply negative implications for social welfare.

John Armour, Colin Mayer, Andrea Polo, 24 March 2016

Following the Global Crisis, regulators around the world have shown a greater commitment to investigating and sanctioning corporate wrongdoers. This column argues that fines are only one (surprisingly small) component of the overall sanctions available to regulators. Reputational sanctions are, for some categories of misconduct, far more potent than direct penalties.

Christopher Stanton, Catherine Thomas, 03 November 2015

Outsourcing labour tasks to lower wage countries has been made much easier by the emergence of global online labour markets. This column argues that there are significant frictions in these markets, making it difficult for workers to get their first job and establish a reputation. However, new types of organisations have emerged that allow the sharing of reputations among groups of high-quality workers. These organisations seem to rely on offline social ties between workers to help reduce information-related trade barriers.

Harold Cole, Thomas Cooley, 22 June 2014

In the aftermath of the sub-prime crisis, the major credit rating agencies have been criticised for giving overly generous ratings to mortgage-backed securities. Whereas many commentators have blamed the ‘issuer pays’ market structure for distorting incentives, this column argues that the key distortion came from regulators’ use of private ratings to assign risk weights. This induced investors to focus on the risk weights attached to ratings rather than their information content, thus undermining the reputation mechanism that had previously kept ratings honest.

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