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Brand Reputation, Efficiency and the Concentration Process: A Case Study

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  • Paba, Sergio

Abstract

The evidence from the European white goods industry, discussed in this paper, shows that once a brand segmentation of the market turns out to be sufficiently stable that is when brand-quality reputation becomes an important factor in the competitive game. It represents a strong inertial factor in the growth of firms even if market structure is far from being efficient in terms of plant size. The paper shows how the inertial role of brands has strongly affected the route of industrial concentration: it has been an incentive to mergers and takeovers rather than to internal growth, particularly when demand stabilized. Copyright 1991 by Oxford University Press.

Suggested Citation

  • Paba, Sergio, 1991. "Brand Reputation, Efficiency and the Concentration Process: A Case Study," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 15(1), pages 21-43, March.
    • Handle: RePEc:oup:cambje:v:15:y:1991:i:1:p:21-43
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    Cited by:

    1. Ahmed, Rasha & Segerson, Kathleen, 2011. "Collective voluntary agreements to eliminate polluting products," Resource and Energy Economics, Elsevier, vol. 33(3), pages 572-588, September.
    2. Fabio Pieri & Riccardo Verruso, 2019. "The determinants of corporate profitability in the Italian domestic appliances industry," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 46(1), pages 83-115, March.

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