Abstract:This paper sets up a two-period reputation model based on signaling game. There are two players in the game , the one is sender with private information , and the other is receiver without private information. The reputa2 tion model studies the type L senders to see whether they have motive to set up reputation in period one or not . We show that the optimal signal of the type L sender is larger in the period two if he sets up reputation in the period one. The utility of the type L sender is less in the period one if he sets up reputation in the period one , but he will get the higher utility in the period two.