Arbeitspapier
Observable Reputation Trading
Is the reputation of a firm tradable when the change in ownership is observable? We consider a competitive market in which a share of owners must retire in each period. New owners bid for the firms that are for sale. Customers learn the owner's type, which reflects the quality of the good or service provided, through experience. After observing an ownership change they may want to switch firm. However, in equilibrium, good new owners buy from good old owners and retain high-value customers. Hence reputation is a tradable intangible asset, although ownership change is observable.
- Language
-
Englisch
- Bibliographic citation
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Series: SFB/TR 15 Discussion Paper ; No. 131
- Classification
-
Wirtschaft
Market Structure, Pricing, and Design: General
Asymmetric and Private Information; Mechanism Design
Transactional Relationships; Contracts and Reputation; Networks
Information and Product Quality; Standardization and Compatibility
- Subject
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Reputation
ownership change
intangible assets
theory of the firm
- Event
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Geistige Schöpfung
- (who)
-
Hakenes, Hendrik
Peitz, Martin
- Event
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Veröffentlichung
- (who)
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Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)
- (where)
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München
- (when)
-
2006
- DOI
-
doi:10.5282/ubm/epub.13420
- Handle
- URN
-
urn:nbn:de:bvb:19-epub-13420-2
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Hakenes, Hendrik
- Peitz, Martin
- Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)
Time of origin
- 2006