Reciprocity, Social Ties, and Competition in Markets for Experience Goods

Publikation: Working paper › Forskning

Standard

Reciprocity, Social Ties, and Competition in Markets for Experience Goods. / Huck, Steffen; Tyran, Jean-Robert.

2005.

Publikation: Working paper › Forskning

Harvard

Huck, S & Tyran, J-R 2005 'Reciprocity, Social Ties, and Competition in Markets for Experience Goods'. https://doi.org/10.2139/ssrn.699961

APA

Huck, S., & Tyran, J-R. (2005). Reciprocity, Social Ties, and Competition in Markets for Experience Goods. University of Copenhagen Economics Working Paper Nr. 04-12 https://doi.org/10.2139/ssrn.699961

Vancouver

Huck S, Tyran J-R. Reciprocity, Social Ties, and Competition in Markets for Experience Goods. 2005 apr. 19. https://doi.org/10.2139/ssrn.699961

Author

Huck, Steffen ; Tyran, Jean-Robert. / Reciprocity, Social Ties, and Competition in Markets for Experience Goods. 2005. (University of Copenhagen Economics Working Paper; Nr. 04-12).

Bibtex

@techreport{505327fd771d4179bc756772a00bf947,
title = "Reciprocity, Social Ties, and Competition in Markets for Experience Goods",
abstract = "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 nonreciprocal 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.",
keywords = "Social networks, reputation, reciprocity, experience goods, customer loyalty",
author = "Steffen Huck and Jean-Robert Tyran",
year = "2005",
month = apr,
day = "19",
doi = "10.2139/ssrn.699961",
language = "English",
series = "University of Copenhagen Economics Working Paper",
number = "04-12",
type = "WorkingPaper",

}

RIS

TY - UNPB

T1 - Reciprocity, Social Ties, and Competition in Markets for Experience Goods

AU - Huck, Steffen

AU - Tyran, Jean-Robert

PY - 2005/4/19

Y1 - 2005/4/19

N2 - 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 nonreciprocal 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.

AB - 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 nonreciprocal 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.

KW - Social networks

KW - reputation

KW - reciprocity

KW - experience goods

KW - customer loyalty

U2 - 10.2139/ssrn.699961

DO - 10.2139/ssrn.699961

M3 - Working paper

T3 - University of Copenhagen Economics Working Paper

BT - Reciprocity, Social Ties, and Competition in Markets for Experience Goods

ER -

ID: 241647454