EconPapers    
Economics at your fingertips  
 

The Value of Relationships: Evidence from a Supply Shock to Kenyan Rose Exports

Rocco Macchiavello () and Ameet Morjaria

No 9531, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper provides evidence on the importance of reputation, intended as beliefs buyers hold about seller's reliability, in the context of the Kenyan rose export sector. A model of reputation and relational contracting is developed and tested. We show that 1) the value of the relationship increases with the age of the relationship; 2) during an exogenous negative supply shock sellers prioritize relationships consistently with the predictions of the model; and 3) reliability at the time of the shock positively correlates with future survival and relationship value. Models exclusively focusing on enforcement or insurance considerations cannot account for the evidence.

Keywords: exports; relational contracts; reputation (search for similar items in EconPapers)
JEL-codes: C73 D23 L14 O12 (search for similar items in EconPapers)
Date: 2013-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24) Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=9531 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: The Value of Relationships: Evidence from a Supply Shock to Kenyan Rose Exports (2015) Downloads
Working Paper: The value of relationships: evidence from a supply shock to Kenyan rose exports (2015) Downloads
Working Paper: The Value of Relationships: Evidence from a Supply Shock to Kenyan Rose Exports (2013) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:9531

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=9531

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2020-09-26
Handle: RePEc:cpr:ceprdp:9531