In this paper the authors analyze the interaction of two disciplinary mechanisms: competition and reputation. They first study a dynamic model of monopolistic competition with experiencs goods (i.e., quality is observed after goods are purchased). When market power is high enough, reputation results in the equilibrium with perfect information being sustainable.
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Paper provided by European University Institute in its series Economics Working Papers with number
eco99/18.
Length: 31 pages Date of creation: 1999 Date of revision: Handle: RePEc:eui:euiwps:eco99/18
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Find related papers by JEL classification: D10 - Microeconomics - - Household Behavior - - - General D00 - Microeconomics - - General - - - General
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