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Home
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Working Papers
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The economics of collective reputation: minimum quality standards, vertical differentiation and optimal group size

Working Paper No. 50

Published: 2009
Category:
Economics

The economics of collective reputation: minimum quality standards, vertical differentiation and optimal group size

Stefano Castriota & Marco Delmastro
Full Text PDF
Abstract

The literature on collective reputation is still in its infancy. Despite a number of valuable theoretical works studying the process of collective reputation building, due to data limitations there are no studies testing the determinants of group reputation. This work represents a first empirical step in this direction. Control variables range from the context in which firms operate to the quality standards set by the coalition, from the variables measuring the vertical and horizontal differentiation to the characteristics of the group. Our research provides empirical support in favor of the usefulness of compulsory and voluntary quality standards. Furthermore, it shows that the relationship between group size and collective reputation is non-linear: free entry may be not optimal since above a certain number of producers the group reputation declines due to free-riding problems.

Submission

Please send your papers as PDF files to the editor, Victor Ginsburgh, at vginsbur@ulb.ac.be
Papers will be quickly reviewed, prior to potential posting on the website. Decision will be to post or not, possibly with short comments, but without referee reports. The decision will be based primarily on the suitability of the paper’s topic to the aims of the Association.
Such decisions are independent of publication decisions for the Journal of Wine Economics.

Working Paper publication requires that at least one author
is a regular member of AAWE.

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