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Signaling Quality by Selling through a Reputable Retailer: An Example of Renting the Reputation of Another Agent

This paper gives an example of renting the reputation of another agent to signal quality. We show that in a ”maximally” separating equilibrium, manufacturers of high quality products distribute through retailers with strong reputation (reputable retailers), while manufacturers of low quality products distribute through retailers with no reputation (discounters). In this way, even if high quality manufacturers have no reputation of their own to post as bond, they can signal quality by posting the reputation of the retailers. In equilibrium, reputable retailers never default on their reputation. We also show that it pays the retailers to invest in reputation, as reputable retailers earn profits bounded away from zero under endogenous sequential entry, while the discounters’ profits are zero.

How to sell your Jammer

Step 1. Agent visits to take a mandate
Step 2. Provide Installation technology for Product accessories
Step 3. Provide sales Skills. Marketing your Jammer

EMPSALE have helped thousands of clients to sell Jammer in World over the past two decades. The selling process is fairly straightforward and in this guide we aim to give you an overall view of how the process works. Our short video guide will talk you through the entire process – or read the more detailed step-by-step guide below.