"A" Business by Any Other Name: Firm Name Choice as a Signal of Firm Quality

S-Tier
Journal: Journal of Political Economy
Year: 2014
Volume: 122
Issue: 4
Pages: 909 - 944

Score contribution per author:

8.073 = (α=2.02 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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.

Technical Details

RePEc Handle
repec:ucp:jpolec:doi:10.1086/676333
Journal Field
General
Author Count
1
Added to Database
2026-01-26