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The value of relationships : evidence from a supply shock to Kenyan rose exports
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Macchiavello, Rocco and Morjariay, Ameet (2013) The value of relationships : evidence from a supply shock to Kenyan rose exports. Working Paper. Coventry, UK: University of Warwick, Department of Economics. Warwick economics research papers series (TWERPS), Volume 2013 (Number 1032).
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Text (Working paper)
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Official URL: http://www2.warwick.ac.uk/fac/soc/economics/resear...
Abstract
This paper provides evidence on the importance of reputation, intended as beliefs buyers hold about seller's reliability, in the context of the Kenyan rose export sector. A model of reputation and relational contracting is developed and tested. We show that 1) the value of the relationship increases with the age of the relationship; 2) during an exogenous negative supply shock sellers prioritize relationships consistently with the predictions of the model; and 3) reliability at the time of the shock positively correlates with future survival and relationship
value. Models exclusively focussing on enforcement or insurance considerations cannot account for the evidence.
Item Type: | Working or Discussion Paper (Working Paper) | ||||
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Subjects: | H Social Sciences > HB Economic Theory | ||||
Divisions: | Faculty of Social Sciences > Economics | ||||
Library of Congress Subject Headings (LCSH): | Flowers -- Marketing , Exports -- Kenya, Economics -- Mathematical models | ||||
Series Name: | Warwick economics research papers series (TWERPS) | ||||
Publisher: | University of Warwick, Department of Economics | ||||
Place of Publication: | Coventry, UK | ||||
Official Date: | June 2013 | ||||
Dates: |
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Volume: | Volume 2013 | ||||
Number: | Number 1032 | ||||
Number of Pages: | 47 | ||||
Institution: | University of Warwick | ||||
Status: | Not Peer Reviewed | ||||
Publication Status: | Published | ||||
Access rights to Published version: | Open Access (Creative Commons) | ||||
Date of first compliant deposit: | 22 November 2017 | ||||
Date of first compliant Open Access: | 22 November 2017 |
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