Optimal Brand Umbrella Size
In a framework or repeate -purchase experience goo s with seller's moral hazar , umbrella branding may improve the terms of the "implicit contract" between firm an consumers, whereby the ¯firm invests in quality an consumers p ay a high price. The reason is that the costs from cheating consumers are greater under umbrella branding (loss of reputation in all products), which implies that the high- uality equilibrium is more stable. The reverse side of this coin is that, if reputation breaks own in one pro uct (which is a istinct possibility in a worl with imperfect observability), then the ba news travel faster un er umbrella branding.
(This abstract was borrowed from another version of this item.)
|Date of creation:||2001|
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- Hakenes, Hendrik & Peitz, Martin, 2008.
"Umbrella branding and the provision of quality,"
International Journal of Industrial Organization,
Elsevier, vol. 26(2), pages 546-556, March.
- Hakenes, Hendrik & Peitz, Martin, 2004. "Umbrella branding and the provision of quality," Papers 04-51, Sonderforschungsbreich 504.
- Hendrik Hakenes & Martin Peitz, 2004. "Umbrella Branding and the Provision of Quality," CESifo Working Paper Series 1373, CESifo Group Munich.
- 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.
- 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.
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