Collective Brand Reputation

Nocke, Volker und Strausz, Roland (19. April 2022): Collective Brand Reputation. Collaborative Research Center Transregio 190, Discussion Paper No. 324

Abstract

We develop a theory of collective brand reputation for markets in which product quality is jointly determined by local and global players. In a repeated game of imperfect public monitoring, we model collective branding as an aggregation of quality signals generated in different markets. Such aggregation yields a beneficial informativeness effect for incentivizing the global player. It however also induces harmful free-riding by local, market-specific players. The resulting tradeoff yields a theory of optimal brand size and revenue sharing that applies to platform markets, franchising, licensing, umbrella branding, and firms with team production.

• Dokumententyp: Paper
• Keywords: collective branding, reputation, free-riding, repeated games, imperfect monitoring
• Fakultät: Volkswirtschaft > Collaborative Research Center Transregio "Rationality and Competition"
• Themengebiete: 300 Sozialwissenschaften > 330 Wirtschaft
• Sprache: Englisch