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Innovation and Reputation

Bibliographic Data

ID10177261
AuthorsRobert A Miller (0000-0002-8158-0291, corresponding author)
Year1988
Volume96
Issue4
Pages741-765
Publication date1988-08-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueJournal of Political Economy (JOURNAL)
Journal identifiersISSN: 0022-3808 • E-ISSN: 1537-534X
PublisherUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/261561
OpenAlexW2108943765
LanguageEN
Citations received1
References cited12

This paper analyzes a monopolist that markets successive generations of new and improving nondurable products. Prices, research intensity, and product innovations are derived as sequential equilibrium outcomes to a dynamic game with incomplete information. Asymmetric information is an important feature of the model. The monopolist is fully aware of the current product's quality, as are consumers who have tried it. However, the beliefs of other people are characterized by a probability distribution that depends on the monopolist's marketing strategy and the product's popularity. The analysis illustrates a new context in which price signaling might serve as a mechanism for ensuring that only high- quality products are marketed. Copyright 1988 by University of Chicago Press

Business · Complete information · Context (archaeology · Economics · Game theory · Industrial organization · Information asymmetry · Microeconomics · Popularity · Product (mathematics · Quality (philosophy · Repeated game · Reputation · Sequential game · Signaling game · Economic theories and models · Game Theory and Applications · Marketing · Merger and Competition Analysis

  • Contextualizing corporate entrepreneurship theory

    Open Access•Adoracion Álvaro-Moya, Águeda Gil-López et al.•Management & Organizational History•2021

  • Reputation and imperfect information

    Open Access•David M Kreps, Robert Wilson•Journal of Economic Theory•1982

  • Equilibrium Selection in Signaling Games

    Jeffrey S Banks, Jeremy Sobel et al.•Econometrica•1987

  • Signaling Games and Stable Equilibria

    In-Koo Cho, In‐Koo Cho et al.•The Quarterly Journal of Economics•1987

  • Reexamination of the perfectness concept for equilibrium points in extensive games

    Open Access•Reinhard Selten•International Journal of Game…•1975

  • Premiums for High Quality Products as Returns to Reputations

    Carl Shapiro•The Quarterly Journal of Economics•1983

  • A Non-cooperative Equilibrium for Supergames

    James W Friedman•The Review of Economic Studies•1971

  • Information Costs, Duration of Search, and Turnover

    Louis L Wilde•Journal of Political Economy•1981

  • Consumer Search with Uncertain Product Quality

    John D Hey, Chris Mckenna et al.•Journal of Political Economy•1981

  • Price and Advertising Signals of Product Quality

    Paul Milgrom, John Roberts•Journal of Political Economy•1986

  • The Role of Market Forces in Assuring Contractual Performance

    Benjamin Klein, Keith B Leffler•Journal of Political Economy•1981

  • Information and Consumer Behavior

    Phillip Nelson•Journal of Political Economy•1970

  • Job Market Signaling

    Michael Spence•The Quarterly Journal of Economics•1973

Unique citing works1
Citations per year0,2
Citation span2021 - 2021 (1)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 1
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