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The more insidious thing is the reputation effect.
The article concludes with policy recommendations on how to further improve trust-based regulations (in our case, the AEO certification) by enhancing the reputation effect of the regulation in four aspects, which are influenced by the popularity, reliability, effectives and international recognition of the policy.
5 A reputation effect could also play a role.
Another key outcome of the results shown in Table 4 is that measures should be drawn by the new operator to ensure mitigation of the reputation effect of the incumbent operator.
Niederalt (2005) argues that rather than the benefit from a positive reputation effect, social pressure might be the reason for the increase in a firm's supply of apprenticeship training.
While Baker and Bulkley found both gratitude and reputation to have an impact; perhaps surprisingly, the gratitude effect was much stronger than the reputation effect.
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It likely still has incentive to take extra care to prevent its record of fatalities from crossing the magic reputational line between 0 and 1. Certain conditions must hold if reputation effects are to underwrite commitment.
The Behavioralist Meets the Market: Measuring Social Preferences and Reputation Effects in Actual Transactions.
The statistical analysis of experimental data reveals that the reputation effects have a stronger impact on dictators' actions than the social influence and identification.
Consistent with this reputation effects hypothesis (REH), previous studies find that FN firms outperform their non-FN counterparts in marketing and customer relations.
Simply repeating the game with the same set of subjects may change the nature of equilibrium, since incomplete information about "types" can lead to reputation effects of the sort described in this chapter.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com