Reputational economies of scale

For many years, most scholars have assumed that the strength of reputational incentives is positively correlated with firm size. Firms sell more products or services were thought likely to be trustworthy than those less because larger firms lose if consumers decide they behaved badly. That assumption has been called into question by recent work shows that, under standard infinitely repeated game model reputation, economies scale will occur only special conditions, such as monopoly, not from behaving badly, but also gain. This article exist even when there competition and without other probability low quality detected quantity good service sold. It exist, some circumstances, in a finite-horizon reputation. Reputational help explain why law accounting can act gatekeepers, mass market are safe, exploit one-sided contracts consumers, manufacturers new umbrella established trademarks.