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Stretching Firm and Brand Reputation

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  • Luis Cabral

Abstract

I consider an adverse selection model of firm reputation. Each firm is characterized by an exogenously given quality level, which is the firm's private information and applies to any product it sells. Consumers observe the performance of the firm's products, which is positively related to the firm's quality level.
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Suggested Citation

  • Luis Cabral, 2000. "Stretching Firm and Brand Reputation," Working Papers 00-07, New York University, Leonard N. Stern School of Business, Department of Economics.
  • Handle: RePEc:ste:nystbu:00-07
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    File URL: http://www.stern.nyu.edu/eco/wkpapers/workingpapers00/00-07Cabral.pdf
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    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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