Information asymmetry and reentry

•We model short-run consumers choosing in sequence to interact with a long-run player.•When the long-run player's reputation is bad, consumers stop to interact.•If stopping is informative for the long-run player, reentry can occur in equilibrium.•The long-run player has to be able to credibly improve on consumers' expected payoff.

We model a reputation game, in which a sequence of short-run players chooses if to interact with a long-run player. Although beliefs may be identical, choices may be different, as not-interacting can lead the long-run player to improve on effort.