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Collective Reputation and Quality

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Author Info
Jason A. Winfree
Jill J. McCluskey

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Abstract

Firms who sell regional or specialty products often share a collective reputation based on aggregate quality. Collective reputation can be approached as a dynamic common property resource problem. We show that for an experience good without firm traceability, individual firms have the incentive to choose quality levels that are sub-optimal for the group. These results support minimum quality standards. Trigger strategies are analyzed as an alternative solution to this problem. Finally, the implications of these results are discussed as they relate to the case study of Washington apples. Copyright 2005 American Agricultural Economics Association.

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Publisher Info
Article provided by American Agricultural Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 87 (2005)
Issue (Month): 1 (02)
Pages: 206-213
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Handle: RePEc:bla:ajagec:v:87:y:2005:i:1:p:206-213

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Kreps, David M. & Wilson, Robert, 1982. "Reputation and imperfect information," Journal of Economic Theory, Elsevier, vol. 27(2), pages 253-279, August. [Downloadable!] (restricted)
    Other versions:
  2. Karp, Larry, 1992. "Social Welfare in a Common Property Oligopoly," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(2), pages 353-72, May. [Downloadable!] (restricted)
  3. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law & Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
  4. David Levhari & Leonard J. Mirman, 1980. "The Great Fish War: An Example Using a Dynamic Cournot-Nash Solution," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 322-334, Spring. [Downloadable!] (restricted)
  5. Kwamena K. Quagrainie & Jill J. McCluskey & Maria L. Loureiro, 2003. "A Latent Structure Approach to Measuring Reputation," Southern Economic Journal, Southern Economic Association, vol. 69(4), pages 966-977, April.
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Ricardo Scarpa & Mara Thiene & Francesco Marangon, 2007. "The Value of Collective Reputation for Environmentally Friendly Production Methods: The Case of Val di Gresta," Working Papers in Economics 07/11, University of Waikato, Department of Economics. [Downloadable!]
    Other versions:
  2. Chengyan Yue & Stephan Marette & John C. Beghin, 2006. "How to Promote Quality Perception in Wine Markets: Brand Advertising or Geographical Indication?," Food and Agricultural Policy Research Institute (FAPRI) Publications 06-wp426, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University. [Downloadable!]
    Other versions:
  3. Pierre Fleckinger, 2007. "Collective Reputation and Market Structure: Regulating the Quality vs Quantity Trade-of," Working Papers hal-00243080_v1, HAL. [Downloadable!]
  4. Scarpa, Riccardo & Thiene, Mara & Marangon, Francesco, 2006. "Consumer’'s WTP for Environment-Friendly Production Methods and Collective Reputation for Place of Origin: The Case of Val di Gresta’'s Carrots," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25637, International Association of Agricultural Economists. [Downloadable!]
  5. Teuber, R., 2008. "Geographical Indications and the Value of Reputation - Empirical Evidence for Cafe de Marcala," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43835, European Association of Agricultural Economists. [Downloadable!]
  6. Ricardo Scarpa & Mara Thiene & Francesco Marangon, 2007. "Using flexible taste distributions to value collective reputation for environmentally-friendly production methods," Working Papers in Economics 07/24, University of Waikato, Department of Economics. [Downloadable!]
    Other versions:
  7. Gergaud, Olivier & Livat, Florine, 2007. "How do consumers use signals to assess quality?," Working Papers 37296, American Association of Wine Economists. [Downloadable!]
  8. Pozo, Veronica & Saak, Alexander & Hanawa-Peterson, Hikaru, 2009. "Product Origin and Reputation for Quality: the Case of Organic Foods," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49503, Agricultural and Applied Economics Association. [Downloadable!]
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