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Medientyp:
E-Artikel
Titel:
“A” Business by Any Other Name: Firm Name Choice as a Signal of Firm Quality
Beteiligte:
McDevitt, Ryan C.
Erschienen:
University of Chicago Press, 2014
Erschienen in:
Journal of Political Economy, 122 (2014) 4, Seite 909-944
Sprache:
Englisch
DOI:
10.1086/676333
ISSN:
1537-534X;
0022-3808
Entstehung:
Anmerkungen:
Beschreibung:
This paper considers when a firm’s deliberately chosen name can signal meaningful information. The average plumbing firm whose name begins with A or a number receives five times more service complaints than other firms and also charges higher prices. Relatedly, plumbers with A names advertise more in the Yellow Pages and on Google, and doing so is positively correlated with receiving complaints. As the use of A names is more prevalent in larger markets, I reconcile these findings with a simple model in which firms have different qualities and consumers have heterogeneous search costs.