A dynamic game model for the formation of the farmers´ reputation in the rural credit market

The farmers´ reputation can present their intrinsic character, which has the role in signaling and screening information for the decision-makings from both borrowing and lending in the rural credit market. As a village can be considered as a unit of rural social networks, the formation of the farmers´ reputation is a Bayesian adjustment. Hence, dynamic game model is used and showed that the farmers´ behavior is the most fundamental factor for formation of the farmers´ reputation, which is dynamic. Moreover, the current reputation is an overall people perception, which is based on the results of previous farmers´ behavior, and current behavior will affect the next farmers´ perception for the farmers, which can form the new reputation level.