Reputation Effects and the Limits of Contracting: A Study of the Indian Software Industry

S-Tier
Journal: Quarterly Journal of Economics
Year: 2000
Volume: 115
Issue: 3
Pages: 989-1017

Authors (2)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

Abstract

This paper examines evidence of the role that reputation plays in determining contractual outcomes. We conduct an empirical analysis of the Indian customized software industry, using a data set we collected containing detailed information on 230 projects carried out by 125 software firms. We propose a model ofthe industry where reputation determines contractual outcomes. The evidence supports the view that reputation matters. Ex ante contracts, as well as the outcome after ex post renegotiation, vary with firms' characteristics plausibly associated with reputation. This holds after controlling for project, client, and firm characteristics.

Technical Details

RePEc Handle
repec:oup:qjecon:v:115:y:2000:i:3:p:989-1017.
Journal Field
General
Author Count
2
Added to Database
2026-01-24