Hakenes, Hendrik; Peitz, Martin - 2006 - First version: July 21, 2003, this version: June 23, 2006
Is the reputation of a firm tradable when the change in ownership is observable? We consider a competitive market in which a share of owners must retire in each period. New owners bid for the firms that are for sale. Customers learn the owner's type, which reflects the quality of the good or...