You are judged by the company you keep : reputation leverage in vertically related markets


Choi, Jay Pil ; Peitz, Martin


[img]
Preview
PDF
Choi und Peitz 16-07.pdf - Published

Download (408kB)

URL: https://ub-madoc.bib.uni-mannheim.de/40560
URN: urn:nbn:de:bsz:180-madoc-405603
Document Type: Working paper
Year of publication: 2016
The title of a journal, publication series: Working Paper Series
Volume: 16-07
Place of publication: Mannheim
Publication language: English
Institution: School of Law and Economics > VWL, Industrieökonomik, Wettbewerbspolitik u. Regulierung (Peitz 2007-)
MADOC publication series: Department of Economics > Working Paper Series
Subject: 330 Economics
Classification: JEL: D4 , L12 , L4 , L43 , L51 , L52,
Keywords (English): Adverse Selection , Certification Intermediaries , Incumbency Advantage , Experience Goods , Outsourcing , Branding , Barriers to Entry
Abstract: This paper analyzes a mechanism through which a supplier of unknown quality can overcome its asymmetric information problem by selling via a reputable downstream firm. The supplier`s adverse-selection problem can be solved if the downstream firm has established a reputation for delivering high quality vis-à-vis the supplier. The supplier may enter the market by initially renting the downstream firm`s reputation. The downstream firm may optimally source its input externally, even though sourcing internally would be better in terms of productive efficiency. Since an entrant in the downstream market may lack reputation, it may suffer from a reputational barrier to entry arising from higher input costs.

Dieser Eintrag ist Teil der Universitätsbibliographie.

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




+ Citation Example and Export

Choi, Jay Pil ; Peitz, Martin (2016) You are judged by the company you keep : reputation leverage in vertically related markets. Open Access Working Paper Series Mannheim 16-07 [Working paper]
[img]
Preview


+ Search Authors in

+ Download Statistics

Downloads per month over past year

View more statistics



You have found an error? Please let us know about your desired correction here: E-Mail


Actions (login required)

Show item Show item