We investigate the relationship between external quality evaluation via experts, firm reputation and product prices and extend the existing empirical literature in three dimensions. First, we empirically account for endogenous reputation effects. An increase in quality has an immediate positive...

Could brands associated with mostly negative information-those with poor reputations-be perceived as superior to unrecognized brands? A reasonable consumer should value reputation; however, it is also sensible to put a heavyweight on brand recognition. To investigate this question, the authors...