Testing of Hypotheses

This chapter reports empirical tests of the primary hypotheses. Presented are the results of multiple and logistic regression analysis. Two specifications for distinct groups of models are developed. Analysis of these two specifications as well as progression from simple models to more complex models demonstrates robustness. Hypothesis 1 is explored first through multiple ordinary least squares regression. Hypotheses 2 and 3 are tested through binary logistic regression. Baseline models (Model 1 in both specifications) contain those contextual variables that hold statistically significant explanatory power. The second pair of models contains the past behavior dimension of reputation plus the contextual variables. The third set of models includes the expected action dimension of reputation in addition to the contextual variables. Finally, Model 4 in both specifications incorporates all of the variables.1