Reciprocity, social ties, and competition in markets for experience goods

Autor(en)

Steffen Huck, Jean-Robert Tyran

Abstrakt

Reciprocal customers may disproportionately improve the performance of markets for experience goods. Reciprocal customers reward (punish) firms for providing good (bad) quality by upholding (terminating) the customer relation. This may induce firms to provide good quality which, in turn, may induce a positive externality for non-reciprocal customers who would, in the absence of reciprocal types, face market breakdown. This efficiency-enhancing effect of reciprocity is boosted when there are social ties between consumers and competition between firms. The existence of social ties or competition alone does not improve market performance.

Organisation(en)

Institut für Volkswirtschaftslehre, Wiener Zentrum für Experimentelle Wirtschaftsforschung

Externe Organisation(en)

University College London

Journal

Journal of Socio-Economics

Band

36

Seiten

191-203

Anzahl der Seiten

13

ISSN

1053-5357

DOI

https://doi.org/10.1016/j.socec.2005.11.051

Publikationsdatum

2007

Peer-reviewed

Ja

ÖFOS 2012

502045 Verhaltensökonomie, 502013 Industrieökonomik

Link zum Portal

https://ucrisportal.univie.ac.at/de/publications/69edea37-9074-4f30-93e0-914a78e25d11