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Cited by 796

The DOI matches its Crossref record; 1 of the 1 references it cites were found in a registry or an index.

Umbrella Branding as a Signal of New Product Quality: An Example of Signalling by Posting a Bond

Wernerfelt, Birger·1988·The RAND Journal of Economics

Abstract

I present a signalling model in which a multiproduct firm can use its reputation as a bond for quality by using a brand name for an established product when it introduces a new experience good. As out-of-equilibrium beliefs are specified, a false signal may be taken to imply that both the established and the new product are of low quality. In contrast, the absence of a signal leaves open the possibility that one of the two products is of high quality. Hence, the signal can be credible without excessive sunk costs, as long as the bond posted is sufficiently large.

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Metadata

Authors
Wernerfelt, B.
Venue
The RAND Journal of Economics
Publisher
Wiley
Published
1988
Volume
19
Issue
3
Pages
458
ISSN
0741-6261 (ISSN-L)
OpenAlex
W2042124431
Cited by
796
References
1
FWCI
12.04
Type
journal article
Language
en
Open access
closed

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