Share the fame or share the blame? The reputational implications of partnerships

Luis Almeida Costa E and Luis Vasconcelos ()

Nova SBE Working Paper Series from Universidade Nova de Lisboa, Nova School of Business and Economics

Abstract: We use an adverse selection model to study the dynamics of firms' reputations when firms implement joint projects. We show that in contrast with projects implemented by a single firm, in the case of joint projects a firm's reputation does not necessarily increase following a success and does not necessarily decrease following a failure. We also study how reputation considerations affect firms ' decisions to participate in joint projects. We show that a high quality partner may not be preferable to a low quality partner, and that a high reputation partner is not necessarily preferable to a low reputation partner.

Keywords: Reputation; partnership; joint project; project performance; Bayesian updating (search for similar items in EconPapers)
JEL-codes: D82 D85 L14 L15 L24 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Share the Fame or Share the Blame? The Reputational Implications of Partnerships (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:unl:unlfep:wp539

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