Limited Partnerships and Reputation Formation
分析多期环境下生产者的最优质量决策与声誉效应，利用房地产有限合伙数据检验生产者是否通过先高后低的质量策略建立声誉，统计结果支持声誉建设行为。
Abstract This paper analyzes the optimal quality decision of a producer in a multi-period setting with reputation effects. Using a unique database of returns on real estate limited partnerships (RELPs), we empirically examine alternative theoretical predictions of optimal producer strategy. In particular, we test whether the producers in our market invest in reputation building by initially selling high quality goods and then lowering quality. Using a variety of statistical tests, we find evidence consistent with reputation building, both in the aggregate and for individual developers.