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Category Signaling and Reputation

Giacomo Negro, Michael T. Hannan, Magali Fassiotto

Organization Science · 2015 · Volume 26 · Issue 2

DOI: 10.1287/orsc.2014.0935

Abstract

We propose that category membership can operate as a collective market signal for quality when low-quality producers face higher costs of gaining membership. The strength of membership as a collective signal increases with the sharpness of the category boundary, that is, contrast . Our empirical study focuses on biodynamic and organic viticulture in Alsace.

Keywords

sociology of markets, organization theory, signaling, reputation, categories, wine industry, Alsace

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