01203nam a22001577a 4500999001900000008004100019100005100060245004300111260004700154300003000201520064200231773004700873906001300920942000700933952010500940  c521203d521203221226b           ||||| |||| 00| 0 eng d  aBoard, Simon and Ter-Vehn, Moritz Meyer936417  aA reputational theory of firm dynamics  aAmerican Economic Journal: Microeconomics   a14(2), May, 2022: p.44-80  aWe study the life cycle of a firm that produces a good of unknown quality. The firm manages its quality by investing while consumers learn via public breakthroughs; if the firm fails to generate such breakthroughs, its revenue falls and it eventually exits. Optimal investment depends on the firm's reputation (the market's belief about its quality) and self-esteem (the firm's own belief about its quality), and is single-peaked in the time since a breakthrough. We derive predictions about the distribution of revenue and propose a method to decompose the impact of policy changes into investment and selection effects. – Reproduced   aAmerican Economic Journal: Microeconomics   aBUSINESS  cAR  00102ddc40709395255aIIPAbIIPAd2022-12-26h14(2), May, 2022: p.44-80pAR127751r2022-12-26yAR