A Study Of Reputation Mechanism Of ShanXi Province Businessmen In Qing Dynasty

Lots of repeated exchanges of people are games played by two sides. People find out that being honest to others are good for all. The reputation mechanism is a useful tool to maintain process of trades. Otherwise the exchange cost must be high. The reputation mechanism includes reputation carrier, prompting mechanism, punishing mechanism and information broadcasting mechanism. It makes sense through culture and contracts. The developments of reputation are different because of the differences of nations.History documents noted these business processes of ShanXi Province businessmen in Qing Dynasty, which included those parts of reputation mechanism. It shows that people at that time already saw the importance of maintaining reputation and used it to inspire people to work hard.