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dc.contributor.authorHakenes, Hendriken_US
dc.contributor.authorPeitz, Martinen_US
dc.date.accessioned2009-01-28T15:52:31Z-
dc.date.available2009-01-28T15:52:31Z-
dc.date.issued2004en_US
dc.identifier.urihttp://hdl.handle.net/10419/18736-
dc.description.abstractConsider a two-product firm that decides on the quality of each product. Product quality is unknown to consumers. If the firm sells both products under the same brand name, consumers adjust their beliefs about quality subject to the performance of both products. We show that if the probability that low quality will be detected is in an intermediate range, the firm produces high quality under umbrella branding whereas it would sell low quality in the absence of umbrella branding. Hence, umbrella branding mitigates the moral hazard problem. We also find that umbrella branding survives in asymmetric markets and that even unprofitable products may be used to stabilize the umbrella brand. However, umbrella branding does not necessarily imply high quality; the firm may choose low-quality products with positive probability.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesCESifo working papers 1373en_US
dc.subject.jelD82en_US
dc.subject.jelL14en_US
dc.subject.jelM37en_US
dc.subject.jelL15en_US
dc.subject.ddc330en_US
dc.subject.keywordumbrella brandingen_US
dc.subject.keywordreputation transferen_US
dc.subject.keywordsignalingen_US
dc.subject.keywordexperience goodsen_US
dc.subject.stwAbsatzkooperationen_US
dc.subject.stwProduktqualitäten_US
dc.subject.stwMarkenartikelen_US
dc.subject.stwProduktimageen_US
dc.subject.stwSignallingen_US
dc.subject.stwAsymmetrische Informationen_US
dc.subject.stwMoral Hazarden_US
dc.titleUmbrella branding and the provision of qualityen_US
dc.typeWorking Paperen_US
dc.identifier.ppn477512615en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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