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The Firm as a Pool of Reputations

18 Pages Posted: 9 Sep 1998  

Fredrik Andersson

Lund University - Department of Economics

Date Written: August 1998


It is shown that reputations, interpreted as assets, satisfy complementarity properties similar to those of physical assets in the property-rights approach to the theory of the firm, and that these complementarities provide a reason for multi-product firms in the absence of technological or organisational economies of scope. The theory is argued to throw light on advertising, brand names and expertise. It is also shown that a reputation for producing high quality of an old good may be necessary to introduce a new good.

JEL Classification: D21, L22

Suggested Citation

Andersson, Fredrik, The Firm as a Pool of Reputations (August 1998). Available at SSRN: or

Fredrik Andersson (Contact Author)

Lund University - Department of Economics ( email )

P.O. Box 7082
S-220 07 Lund
+46 46 222 8676 (Phone)
+46 46 222 4118 (Fax)

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