Umbrella Branding and External Certification
We study the interdependence of optimal tax and expenditure policies. An optimal policy requires that information on preferences is made available. We first study this problem from a general mechanism design perspective and show that efficiency is possible only if the individuals who decide on public good provision face an own incentive scheme that differs from the tax system. We then study democratic mechanisms with the property that tax payers vote over public goods. Under such a mechanism, efficiency cannot be reached and welfare from public good provision declines as the inequality between rich and poor individuals increases.
|Date of creation:||Apr 2008|
|Date of revision:|
|Contact details of provider:|| Postal: Kurt-Schumacher-Str. 10 - D- 53113 Bonn|
Phone: +49-(0)228 / 91416-0
Fax: +49-(0)228 / 91416-55
Web page: http://www.coll.mpg.de/
More information through EDIRC
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.:
- In-Koo Cho & David M. Kreps, 1987.
"Signaling Games and Stable Equilibria,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 102(2), pages 179-221.
- Hongbin Cai & Ichiro Obara, 2009.
"Firm reputation and horizontal integration,"
RAND Journal of Economics,
RAND Corporation, vol. 40(2), pages 340-363.
- Hongbin Cai & Ichiro Obara, 2008. "Firm Reputation and Horizontal Integration," Levine's Working Paper Archive 122247000000002038, David K. Levine.
- Hongbin Cai & Ichiro Obara, 2006. "Firm Reputation and Horizontanl Integration," Levine's Bibliography 321307000000000285, UCLA Department of Economics.
- Cai, Hongbin, 2004. "Firm Reputation and Horizontal Integration," Santa Cruz Department of Economics, Working Paper Series qt6rk9f1fm, Department of Economics, UC Santa Cruz.
- Hendrik Hakenes & Martin Peitz, 2004.
"Umbrella Branding and the Provision of Quality,"
CESifo Working Paper Series
1373, CESifo Group Munich.
- Hakenes, Hendrik & Peitz, Martin, 2006. "Umbrella Branding and the Provision of Quality," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 132, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Hakenes, Hendrik & Peitz, Martin, 2004. "Umbrella branding and the provision of quality," Papers 04-51, Sonderforschungsbreich 504.
- Hakenes, Hendrik & Peitz, Martin, 2004. "Umbrella Branding and the Provision of Quality," Sonderforschungsbereich 504 Publications 04-51, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
- Steven Tadelis, 1999.
"What's in a Name? Reputation as a Tradeable Asset,"
American Economic Review,
American Economic Association, vol. 89(3), pages 548-563, June.
- Thomas L. Sporleder & Peter D. Goldsmith, 2001. "Alternative Firm Strategies for Signaling Quality in the Food System," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 49(4), pages 591-604, December.
- Luis M. B. Cabral, 2001.
"Optimal Brand Umbrella Size,"
01-06, New York University, Leonard N. Stern School of Business, Department of Economics.
- Cabral, L.M.B., 2001. "Optimal Brand Umbrella Size," New York University, Leonard N. Stern School Finance Department Working Paper Seires 01-06, New York University, Leonard N. Stern School of Business-.
- Pil Choi, J., 1997.
"Brand Extension as Informational Leverage,"
ISER Discussion Paper
0451, Institute of Social and Economic Research, Osaka University.
- Andersson, Fredrik, 2002. "Pooling reputations," International Journal of Industrial Organization, Elsevier, vol. 20(5), pages 715-730, May.
- Luis Cabral, 2000.
"Stretching Firm and Brand Reputation,"
00-07, New York University, Leonard N. Stern School of Business, Department of Economics.
- Cabral, L.M.B., 2000. "Stretching Firm and Brand Reputation," New York University, Leonard N. Stern School Finance Department Working Paper Seires 00-07, New York University, Leonard N. Stern School of Business-.
- Birger Wernerfelt, 1988. "Umbrella Branding as a Signal of New Product Quality: An Example of Signalling by Posting a Bond," RAND Journal of Economics, The RAND Corporation, vol. 19(3), pages 458-466, Autumn.
When requesting a correction, please mention this item's handle: RePEc:mpg:wpaper:2008_10. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marc Martin)
If references are entirely missing, you can add them using this form.