Collective reputation, social norms, and participation

This paper analyzes a repeated games model of collective reputation with imperfect public monitoring and perfect local peer monitoring of efforts. Even when peer monitoring is local, firms may achieve higher profits under collective reputation by decreasing the cost of maintaining customers' trust....

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Autor principal: Saak, Alexander E.
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2011
Materias:
Acceso en línea:https://hdl.handle.net/10568/153925
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author Saak, Alexander E.
author_browse Saak, Alexander E.
author_facet Saak, Alexander E.
author_sort Saak, Alexander E.
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper analyzes a repeated games model of collective reputation with imperfect public monitoring and perfect local peer monitoring of efforts. Even when peer monitoring is local, firms may achieve higher profits under collective reputation by decreasing the cost of maintaining customers' trust. The optimal number of firms that share a common reputation is greater when (1) trades are more frequent and public information is disseminated more rapidly, (2) the deviation gain is smaller compared to the quality premium, (3) customers' information regarding firms' quality is more precise, or (4) intragroup information about firms' quality is more global. From a positive perspective, we suggest how social norms can influence the reputation of regional products. We also offer an efficiency explanation for food scares. From a normative point of view, in our model, protection of geographical indications increases and mandatory traceability decreases welfare and incentives to provide quality without taking into account direct implementation costs.
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publishDate 2011
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spelling CGSpace1539252025-11-06T06:35:20Z Collective reputation, social norms, and participation Saak, Alexander E. monitoring penalties This paper analyzes a repeated games model of collective reputation with imperfect public monitoring and perfect local peer monitoring of efforts. Even when peer monitoring is local, firms may achieve higher profits under collective reputation by decreasing the cost of maintaining customers' trust. The optimal number of firms that share a common reputation is greater when (1) trades are more frequent and public information is disseminated more rapidly, (2) the deviation gain is smaller compared to the quality premium, (3) customers' information regarding firms' quality is more precise, or (4) intragroup information about firms' quality is more global. From a positive perspective, we suggest how social norms can influence the reputation of regional products. We also offer an efficiency explanation for food scares. From a normative point of view, in our model, protection of geographical indications increases and mandatory traceability decreases welfare and incentives to provide quality without taking into account direct implementation costs. 2011 2024-10-01T13:58:25Z 2024-10-01T13:58:25Z Working Paper https://hdl.handle.net/10568/153925 en Open Access application/pdf International Food Policy Research Institute Saak, Alexander E. 2011. Collective reputation, social norms, and participation. IFPRI Discussion Paper 1107. https://hdl.handle.net/10568/153925
spellingShingle monitoring
penalties
Saak, Alexander E.
Collective reputation, social norms, and participation
title Collective reputation, social norms, and participation
title_full Collective reputation, social norms, and participation
title_fullStr Collective reputation, social norms, and participation
title_full_unstemmed Collective reputation, social norms, and participation
title_short Collective reputation, social norms, and participation
title_sort collective reputation social norms and participation
topic monitoring
penalties
url https://hdl.handle.net/10568/153925
work_keys_str_mv AT saakalexandere collectivereputationsocialnormsandparticipation