Reputation building requires sacrificing short-term gains for future returns

Evidence

The fact that the dishonest salesman builds his reputation by going against his short-term interests is an important feature to highlight. This is his investment. — Diego Gambetta, Trust - Making and Breaking Cooperative…, 1005

Categorization

• XREF: Connects to Milgrom’s finding that a continuing relationship functions as a forfeitable bond against cheating — reputation is an investment whose value exceeds short-term opportunism.