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Reputation and Product Quality

Rogerson, William P. (1980) Reputation and Product Quality. Social Science Working Paper, 330. California Institute of Technology , Pasadena, CA. (Unpublished)

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This paper examines a market where buyers cannot judge the quality of the good they receive until after they consume it. Even then, they may make mistakes in their judgments. The paper derives the equilibrium quality distribution for goods produced and the equilibrium distribution of firms by the quality of good they produce, and identifies the specific factors which produce a reputation effect. Comparative statics allow analysis of the effects of restrictions on information flow and barriers to entry.

Item Type:Report or Paper (Working Paper)
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Additional Information:This paper was written while I was supported by a Canada Council Doctoral Fellowship. I would like to thank Robert Bates, Ed Green, Roger Noll, Alan Schwartz, and Louis Wilde for helpful discussions. Published as Rogerson, William P. "Reputation and product quality." The Bell Journal of Economics (1983): 508-516.
Group:Social Science Working Papers
Funding AgencyGrant Number
Canada Council Doctoral FellowshipUNSPECIFIED
Subject Keywords:Consumer equilibrium, Consumer economics, Consumer information, Customers, Fixed costs, Consumer choice, Recommendations, Market prices, Consumer prices, Industrial output
Series Name:Social Science Working Paper
Issue or Number:330
Record Number:CaltechAUTHORS:20171010-141820064
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Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:82261
Deposited By: Jacquelyn Bussone
Deposited On:11 Oct 2017 20:54
Last Modified:03 Oct 2019 18:52

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