Hostname: page-component-586b7cd67f-t7czq Total loading time: 0 Render date: 2024-11-20T08:23:44.880Z Has data issue: false hasContentIssue false
  • English
  • Français

Seller Reputation: Individual, Collective, and Institutional Factors*

Published online by Cambridge University Press:  31 July 2012

Stefano Castriota  and
Marco Delmastro
Stefano Castriota
Affiliation:
Università di Perugia, Department of Economics, Via A. Pascoli 20, 06123 Perugia, Italy. e-mail: stefano.castriota@unipg.it, Tel. +39 328 8879095.
Marco Delmastro
Affiliation:
Autorità per le Garanzie nelle Comunicazioni, Viale Isonzo 21b, 00198 Rome, Italy. e-mail: m.delmastro@agcom.it, Tel. +39 06 69644207.
Get access Rights & Permissions [Opens in a new window]

Abstract

In this paper, we study firm reputation by investigating the interaction between individual reputations of Italian wineries and a large set of (possible) determinants. With respect to winery reputation, we find a positive effect for firm age and size and producer's intrinsic motivations and a negative effect for outsourcing, while horizontal differentiation, ownership status, and hiring well-known consultants play no role. Further, collective reputation and institutional regulation exert a significantly positive effect on individual reputation. (JEL Classification: L14, L15)

Type
Research Article
Information
Journal of Wine Economics , Volume 7 , Issue 1 , May 2012 , pp. 49 - 69
Copyright
Copyright © American Association of Wine Economists 2012

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Akerlof, G. (1970). The market for “lemons”: quality uncertainty and the market mechanism. Quarterly Journal of Economics, 84, 488–500.CrossRefGoogle Scholar
Ali, H.H., Lecocq, S., and Visser, M. (2008). The impact of gurus: Parker grades and en primeur wine prices. Economic Journal, 118, 158–173.CrossRefGoogle Scholar
Allen, F. (1984). Reputation and product quality. RAND Journal of Economics, 15, 311–327.CrossRefGoogle Scholar
Banerjee, A., and Duflo, E. (2000). Reputation effects and the limits of contracting: a study of the Indian software industry. Quarterly Journal of Economics, 115, 989–1017.CrossRefGoogle Scholar
Bar-Isaac, H., and Tadelis, S. (2008). Seller reputation. Foundations and Trends in Microeconomics, 4, 273–351.CrossRefGoogle Scholar
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99–120.CrossRefGoogle Scholar
Barro, R., and Gordon, D. (1983). Rules, discretion, and reputation in a model of monetary policy. Journal of Monetary Economics, 12, 101–121.CrossRefGoogle Scholar
Cabral, L. (2000). Stretching firm and brand reputation. RAND Journal of Economics, 31, 658–673.CrossRefGoogle Scholar
Cabral, L., and Hortaçsu, A. (2010). The dynamics of seller reputation: evidence from eBay. Journal of Industrial Economics, 58, 54–78.CrossRefGoogle Scholar
Chu, W., and Chu, W. (1994). Signaling quality by selling through a reputable retailer: an example of renting the reputation of another agent. Marketing Science, 13, 177–189.CrossRefGoogle Scholar
Costanigro, M., McCluskey, J.J., and Goemans, C. (2010). The economics of nested names: name specificity, reputations, and price premia. American Journal of Agricultural Economics, 92, 1339–1350.CrossRefGoogle Scholar
Cross, R., Plantiga, A., and Stavins, R. (2011). What is the value of terroir? American Economic Review: Papers & Proceedings, 101, 152–156.CrossRefGoogle Scholar
Delmastro, M. (2005). An investigation into the quality of wine: evidence from Piedmont. Journal of Wine Research, 16, 1–17.CrossRefGoogle Scholar
Drudi, F., and Prati, A. (2000). Signalling fiscal regime sustainability. European Economic Review, 44, 1897–1930.CrossRefGoogle Scholar
Fishman, A., Finkelshtain, I., Simhon, A., and Yacouel, N. (2008). The economics of collective brands. Discussion Paper 14.08, Hebrew University of Jerusalem.CrossRefGoogle Scholar
Fleckinger, P. (2007). Collective reputation and market structure: regulating the quality vs. quantity trade-off. Discussion Paper, Ecole Polytechnique.Google Scholar
Fombrun, C., and Shanley, M. (1990). What's in a name? Reputation building and corporate strategy. Academy of Management Journal, 33, 233–258.CrossRefGoogle Scholar
Frick, B. (2004). Does ownership matter? Kyklos, 57, 357–386.CrossRefGoogle Scholar
Frick, B. (2010). The impact of individual and collective reputation on wine prices: empirical evidence from the Mosel valley. Paper presented at the 2010 AAWE annual conference at the University of California at Davis.Google Scholar
Gergaud, O., and Ginsburgh, V. (2008). Natural endowments, production technologies and the quality of wines in Bordeaux. Does terroir matter? Economic Journal, 118, 142–157.Google Scholar
Gergaud, O., and Livat, F. (2004). Team versus individual reputations: a model of interaction and some empirical evidence. Université de Reims Champagne-Ardenne Working Paper.Google Scholar
Gergaud, O., Montana, L., and Verardi, V. (2007). Stardust over Paris gastronomic restaurants. Journal of Wine Economics, 2, 24–39.CrossRefGoogle Scholar
Goldberg, M., and Hartwick, J. (1990). The effects of advertiser reputation and extremity of advertising claim on advertising. Journal of Consumer Research, 17, 172–179.CrossRefGoogle Scholar
Gomes, A. (2000). Going public without governance: managerial reputation effects. Journal of Finance, 55, 615–646.CrossRefGoogle Scholar
Gorton, G. (1996). Reputation formation in early bank note markets. Journal of Political Economy, 104, 46–97.CrossRefGoogle Scholar
Guiso, L., Sapienza, P., and Zingales, L. (2004). The role of social capital in financial development. American Economic Review, 94, 526–557.CrossRefGoogle Scholar
Heijbroek, A.M.A. (2003). Consequences of the globalization in the wine industry. Paper presented at Symposium Internacional Great Wine Capitals Global Network, Bilbao (Spain), October 8.Google Scholar
Horner, J. (2002). Reputation and competition. American Economic Review, 92, 644–663.CrossRefGoogle Scholar
Houser, D., and Wooders, J. (2006). Reputation in auctions: theory and evidence from eBay. Journal of Economics and Management Strategy, 15, 353–369.Google Scholar
Jackson, R.S. (2008). Wine Science: Principles and Applications. Oxford: Academic PressGoogle Scholar
Johnson, H. (2004, 2006, and 2009). Hugh Johnson's Pocket Wine Book. 27th, 29th, and 32nd eds. London: Mitchell Beazley.Google Scholar
Keser, C. (2003). Experimental games for the design of reputation management systems. IBM Systems Journal, 42, 498–506.CrossRefGoogle Scholar
Klein, B., and Leffer, K.B. (1981). The role of market forces in assuring contractual performance. Journal of Political Economy, 89, 615–641.CrossRefGoogle Scholar
Kreps, D. (1990). Corporate culture and economic theory. In Alt, J. and Shepsle, K. (eds.), Perspectives on Positive Political Economy. Cambridge: Cambridge University Press.Google Scholar
Landon, S., and Smith, C. (1998). Quality expectations, reputation, and price. Southern Economic Journal, 64, 628–647.Google Scholar
Espresso, L.’ (2006). I vini d'Italia. 5th ed. Rome.Google Scholar
Lott, J. (1996). The level of optimal fines to prevent fraud when reputations exist and penalty clauses are unenforceable. Managerial and Decision Economics, 17, 363–380.3.0.CO;2-3>CrossRefGoogle Scholar
Maksimovic, V., and Titman, S. (1991). Financial policy and reputation for product quality. Review of Financial Studies, 4, 175–200.CrossRefGoogle Scholar
McQuade, T., Salant, S., and Winfree, J. (2008). Quality standard effects on goods with collective reputation and multiple components. Working Paper.Google Scholar
Melnik, M., and Alm, J. (2002). Does a seller's ecommerce reputation matter? Evidence from eBay auctions. Journal of Industrial Economics, 50, 337–349.CrossRefGoogle Scholar
Mirvis, P. (1992). The quality of employment in the nonprofit sector: an update on employee attitudes in nonprofit versus business and government. Nonprofit Management & Leadership, 3, 23–41.CrossRefGoogle Scholar
Resnick, P., Zeckhauser, R., Swanson, J., and Lockwood, K. (2006). The value of reputation on eBay: a controlled experiment. Experimental Economics, 9, 79–101.CrossRefGoogle Scholar
Rob, R., and Fishman, A. (2005). Is bigger better? Customer base expansion through word-of-mouth reputation. Journal of Political Economy, 113, 1146–1162.CrossRefGoogle Scholar
Roberts, P., and Dowling, G. (2002). Corporate reputation and sustained superior financial performance. Strategic Management Journal, 23, 1077–1093.CrossRefGoogle Scholar
Roberts, P., Khaire, M., and Rider, C. (2011). Isolating the symbolic implications of employee mobility: price increases after hiring winemakers from prominent wineries. American Economic Review Papers and Proceedings, 101 (3), 147–51.CrossRefGoogle Scholar
Rogerson, W. (1983). Reputation and product quality. Bell Journal of Economics, 14, 508–516.CrossRefGoogle Scholar
Schnabel, H., and Storchmann, K. (2010). Prices as quality signals: evidence from the wine market. Journal of Agricultural & Food Industrial Organization, 8, 1–23.CrossRefGoogle Scholar
Scott Long, J., and Freese, J. (2005). Regression models for categorical and limited dependent variables with Stata. 2d ed.College Station, TX: Stata Press.Google Scholar
Scott Morton, F., and Podolny, J. (2002). Love or money? The effects of owner motivation in the California wine industry. Journal of Industrial Economics, 50, 431–456.CrossRefGoogle Scholar
Shapiro, C. (1983). Premiums for high quality products as returns to reputations. Quarterly Journal of Economics, 98, 659–680.CrossRefGoogle Scholar
Sridhar, S. (1994). Managerial reputation and internal reporting. Accounting Review, 69, 343–363.Google Scholar
Tirole, J. (1996). A theory of collective reputations (with applications to the persistence of corruption and to firm quality). Review of Economic Studies, 63, 1–22.CrossRefGoogle Scholar
Unwin, T. (1991). Wine and the Vine. London: Routledge.Google Scholar
Wernerfelt, B. (1988). Umbrella branding as a signal of product quality: an example of signaling by posting a bond. RAND Journal of Economics, 19, 458–466.CrossRefGoogle Scholar
Winfree, J., and McCluskey, J. (2005). Collective reputation and quality. American Journal of Agricultural Economics, 87, 206–213.CrossRefGoogle Scholar
Winkler, A.J., Cook, J.A., Kliever, W.M., and Lider, L.A. (1974). General Viticulture. Berkeley: University of California Press.CrossRefGoogle Scholar
Yermack, D. (2004). Retention, and reputation incentives for outside directors. Journal of Finance, 59, 2281–2308.CrossRefGoogle Scholar