Showing 1 - 10 of 13
changed at zero cost.  This paper examines the reputation mechanisms that keep this market working and considers whether they …
Persistent link: https://www.econbiz.de/10011133067
Do asset prices aggregate investors’ private information about the ability of financial analysts? We show that as financial analysts become reputable, the market can get trapped: Investors optimally choose to ignore their private information, and blindly follow analyst recommendations. As time...
Persistent link: https://www.econbiz.de/10011240393
high quality. A firm may want to start over under a new name in order to avoid market punishment, if the reputation carried …
Persistent link: https://www.econbiz.de/10010734536
price-takers. Entrants have an endogenous reputation uE. In the steady-state equilibrium, uE is the lowest reputation among …
Persistent link: https://www.econbiz.de/10010774072
This paper analyzes the impact of market structure on career concerns. Effort increases the probability that a skilled agent achieves a one-time breakthrough. Wages are based on assessed ability and on expected output. For any wage, the agent works too little, too late. Under short-term...
Persistent link: https://www.econbiz.de/10010895652
collective reputation with the wider membership of her cabinet; we show that heterogeneity of cabinet membership can play an …
Persistent link: https://www.econbiz.de/10005047938
This paper shows that more intense competition may improve, rather than hamper, the chances that a market for an experience good or service overcomes the problems caused by informational asymmetries. This, in spite of the fact that intensified competition diminishes the reputational rents that...
Persistent link: https://www.econbiz.de/10005002718
We study a class of continuous-time reputation games between a large player and a population of small players in which …
Persistent link: https://www.econbiz.de/10005762590
We enrich a simple two-person bargaining model by introducing "behavioral types" who concede more slowly than does the average person in the economy. The presence of behavioral types profoundly influences the choices of optimizing types. In equilibrium, concessions are calculated to induce...
Persistent link: https://www.econbiz.de/10005762599
In this paper we analyze a reputation-based mechanism that sustains the provision of high quality in a market for an … experience good. In contrast to existing models of reputation, however, we consider a competitive market: there is a continuum of … an invariant long run distribution of firms' reputations: each firm's reputation changes every period even in the long …
Persistent link: https://www.econbiz.de/10005212286