The Application of Reputation Model in the E-literature Procurement of Library

Abstract

In the process of e-literature procurement, there is asymmetric information between the library and the e-literature provider. This paper establishes a two-stage reputation model and analyzes the process of repeated games of the designated procurement of E-literature. We find that, although the behavior of the e-literature providers is difficult to be observed, and their efforts level will be lower than the level in the scenario of full information. With the consideration of future earnings, the effort level of the e-literature provider is strictly positive before the last period. Therefore, signing a long-term contract with the e-literature provider is beneficial to the library.