MET Seminar - Jack Fanning (Brown)
| Dates: | 21 November 2023 |
|---|
| Times: | 17:00 - 18:00 |
|---|
| What is it: | Seminar |
|---|
| Organiser: | School of Social Sciences |
|---|
| Who is it for: | University staff, Current University students |
|---|
|
Title: Reputation and competitive selection (joint with Joyee Deb)
Abstract: We demonstrate how selection in competitive markets can severely impede reputational incentives. Reputational equilibria, where consumers select firms based on their reputation for quality, cannot exist when there is almost-free entry. We consider a setting in which competent firms can exert costly effort to improve expected quality of output and inept firms cannot. Unfettered competition would eventually select a monopolist with an arbitrarily high reputation for competence, ruling out subsequent effort incentives, and causing even initial effort incentives to unravel. Intermediate entry barriers can provide greater effort incentives than both unfettered competition and no competition, suggesting a non-monotonic effect of entry barriers on reputational incentives.
Manchester Economic Theory (MET) schedule: http://daviddelacretaz.net/seminars/
Speaker website: https://sites.google.com/a/brown.edu/jfanning/jack-fanning
Travel and Contact Information
Find event
Boardroom 2.016
Arthur Lewis Building
Manchester
