Observable Reputation Trading

Hakenes, Hendrik und Peitz, Martin (Juni 2006): Observable Reputation Trading. SFB/TR 15 Discussion Paper No. 131

Abstract

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.

• Dokumententyp: Paper
• Keywords: Reputation, ownership change, intangible assets, theory of the firm.
• Fakultät: Sonderforschungsbereiche > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems ; Sonderforschungsbereiche > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems > B3 - Unternehmenskontrolle, Unternehmensfinanzierung und Effizienz ; Sonderforschungsbereiche > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems > C6 - Kommunikations- und Transporttechnologien, Industrie- und Regionalstruktur
• Themengebiete: 300 Sozialwissenschaften > 330 Wirtschaft
• JEL Classification: D40, D82, L14, L15
• Sprache: Englisch