which firms slant their reports toward the prior beliefs of their customers in order to build a reputation for quality. Bias …

firm invests, and the market shuts down. Learning introduces reputation incentives such that a fraction of entrants do … invest. If the market operates with spot prices, simple regulation can enhance the role of reputation to induce investment …

Collective reputation implies an important externality. Among firms trading internationally, quality shocks about one … noninspected firms. These findings highlight the importance of collective reputation in international trade and the challenges … the strength of the reputation spillover. We find that the spillover effects are smaller in destinations where people have …

Product-recall data and information on stock-price reactions to recalls are used to estimate the value of reputation in … occurs. We estimate that reputation accounts for 8.3 percent of firm value and that welfare is 26 percent of its first best …

propagated abroad. In previous work, we built on the theory of rational bubbles to develop a framework to think about the origins …