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"A" business by any other name: Firm name choice as a signal of firm quality

Publication ,  Journal Article
McDevitt, RC
Published in: Journal of Political Economy
January 1, 2014

This paper considers when a firm's deliberately chosen name can signal meaningful information. The average plumbing firm whose name begins with A or a number receives five times more service complaints than other firms and also charges higher prices. Relatedly, plumbers with A names advertise more in the Yellow Pages and on Google, and doing so is positively correlated with receiving complaints. As the use of A names is more prevalent in larger markets, I reconcile these findings with a simple model in which firms have different qualities and consumers have heterogeneous search costs. © 2014 by The University of Chicago. All rights reserved.

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Published In

Journal of Political Economy

DOI

EISSN

1537-534X

ISSN

0022-3808

Publication Date

January 1, 2014

Volume

122

Issue

4

Start / End Page

909 / 944

Related Subject Headings

  • Economics
  • 38 Economics
  • 35 Commerce, management, tourism and services
  • 15 Commerce, Management, Tourism and Services
  • 14 Economics
 

Citation

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McDevitt, R. C. (2014). "A" business by any other name: Firm name choice as a signal of firm quality. Journal of Political Economy, 122(4), 909–944. https://doi.org/10.1086/676333
McDevitt, R. C. “"A" business by any other name: Firm name choice as a signal of firm quality.” Journal of Political Economy 122, no. 4 (January 1, 2014): 909–44. https://doi.org/10.1086/676333.
McDevitt RC. "A" business by any other name: Firm name choice as a signal of firm quality. Journal of Political Economy. 2014 Jan 1;122(4):909–44.
McDevitt, R. C. “"A" business by any other name: Firm name choice as a signal of firm quality.” Journal of Political Economy, vol. 122, no. 4, Jan. 2014, pp. 909–44. Scopus, doi:10.1086/676333.
McDevitt RC. "A" business by any other name: Firm name choice as a signal of firm quality. Journal of Political Economy. 2014 Jan 1;122(4):909–944.
Journal cover image

Published In

Journal of Political Economy

DOI

EISSN

1537-534X

ISSN

0022-3808

Publication Date

January 1, 2014

Volume

122

Issue

4

Start / End Page

909 / 944

Related Subject Headings

  • Economics
  • 38 Economics
  • 35 Commerce, management, tourism and services
  • 15 Commerce, Management, Tourism and Services
  • 14 Economics