TRADEMARK SALES, ENTRY, AND THE VALUE OF REPUTATION

B-Tier
Journal: International Economic Review
Year: 2008
Volume: 49
Issue: 2
Pages: 547-576

Authors (2)

Howard P. Marvel (not in RePEc) Lixin Ye (Ohio State University)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

We develop an infinite‐horizon, overlapping‐generations model of reputation in which consumers base willingness to pay for agent services on past performance summarized by a trademark. We show that when trademarks can be sold, successful firms capture the full value of their reputations upon sale but receive smaller premia for good performance while active as service providers. With discounting, all agents are worse off with trademark trade. Taking entry cost into account, we show that trademark trade typically reduces entry. When entry costs are high, welfare is increased by prohibiting such trade.

Technical Details

RePEc Handle
repec:wly:iecrev:v:49:y:2008:i:2:p:547-576
Journal Field
General
Author Count
2
Added to Database
2026-01-29