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, by grading honestly, a school can build up reputation. Introducing a concern for reputation into an established signaling … model of grading, we show that this mechanism reduces or even avoids grade inflation. -- grading ; signaling ; reputation …
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Consider a two-product firm that decides on the quality of each product. Product quality is unknown to consumers. If the firm sells both products under the same brand name, consumers adjust their beliefs about quality subject to the performance of both products. We show that if the probability...
Persistent link: https://www.econbiz.de/10010365881
Is the reputation of a firm tradeable when the previous owner has to retire even though ownership change is observable … good type. Hence reputation is tradeable, although ownership change is observable. In our model, reputation is an …
Persistent link: https://www.econbiz.de/10011449475
This paper studies the reputation effect in which a long-lived player faces a sequence of uninformed short …
Persistent link: https://www.econbiz.de/10013087097
business, are particularly vulnerable. Maintaining a positive reputation, however, is costly, leading to the potential for …
Persistent link: https://www.econbiz.de/10013088818
I study how a firm manages its reputation by investing in the quality of its product and censoring bad news. Without …
Persistent link: https://www.econbiz.de/10012842093
We study a firm's incentives to build and maintain reputation for quality, when quality is persistent and can be … investment– depend only on the firm's reputation. MPE vary in frequency of certification and payoffs, but are generally …
Persistent link: https://www.econbiz.de/10012968136
monopolistic certifier can be hump-shaped in its reputation for accuracy: a higher accuracy attracts high-quality sellers but … one certifier, competition plays a disciplining role and the region where reputation is bad shrinks. Conversely, this …
Persistent link: https://www.econbiz.de/10013007814
a firm with a low reputation to reestablish itself. But, the ability to promote can crowd out incentives for investment … at high reputations; the firm allows its reputation to decay more before it is renewed relative to a firm motivated by …
Persistent link: https://www.econbiz.de/10012855106