|
AgEcon Search >
Hebrew University of Jerusalem >
Department of Agricultural Economics and Management >
Discussion Papers >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/46056
|
| Title: | The Economics of Collective Brands |
| Authors: | Fishman, Arthur
Finkelshtain, Israel
Simhon, Avi
Yacouel, Nira |
| Authors (Email): | Finkelshtain, Israel (finkelsh@agri.huji.ac.il)
Simhon, Avi (asimhon@agri.huji.ac.il)
Yacouel, Nira (yacouel@agri.huji.ac.il) |
| Issue Date: | 2008-12-15 |
| Series/Report no.: | Discussion Paper
14.08 |
| Abstract: | We consider the consequences of a shared brand name such as geographical names used
to identify high quality products, for the incentives of otherwise autonomous firms to
invest in quality. We contend that such collective brand labels improve communication
between sellers and consumers, when the scale of production is too small for individual
firms to establish reputations on a stand alone basis. This has two opposing effects on
member firms’ incentives to invest in quality. On the one hand, it increases investment
incentives by increasing the visibility and transparency of individual member firms, which
increases the return from investment in quality. On the other hand, it creates an incentive
to free ride on the group’s reputation, which can lead to less investment in quality. We
identify parmater values under which collective branding delivers higher quality than is
achievable by stand alone firms. |
| URI: | http://purl.umn.edu/46056 |
| Institution/Association: | Hebrew University of Jerusalem>Department of Agricultural Economics and Management>Discussion Papers |
| Collections: | Discussion Papers
|
Files in This Item:
| File |
Description |
Size | Format |
|---|
| simhon-collective.pdf | | 391Kb | PDF | View/Open |
|
Recommend this item
All items in AgEcon Search are protected by copyright.
|
