The Dynamics of Names: A Model of Reputation
University of Essex
International Economic Review, Vol. 52, Issue 4, pp. 1039-1058, 2011
The article studies reputation of names and its dynamics. First, the article shows that names backed by nothing intrinsic can bear reputation. Although the context is purely of adverse selection, a mechanism in the spirit of Kreps (1990) helps to sustain reputation. Second, it examines how the dynamics of the reputation affects the extent of sorting and the level of social efficiency and derives the dynamics in the equilibria with the highest efficiency. Finally, it empirically predicts that brand names can be fully established sooner in an industry where high‐end products have larger profit margins.
Number of Pages in PDF File: 20Accepted Paper Series
Date posted: November 25, 2011
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo2 in 0.594 seconds