This series of discussions presents commentaries and a rejoinder on the economic perspectives on branding arising from Moorthy (Moorthy S. (2012) Can brand extension signal product quality? Marketing Sci. 31(5):756-770)

This paper asks whether brand extension can serve as a signal of product quality given that it costs less than a new brand. (Existing literature has assumed either that brand extension is cost-neutral or that it costs more.) I show that it can as a perfect Bayesian equilibrium, but the argument...