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Reputation Effects and the Limits of Contracting: A Study of the Indian Software Industry

Harvard Dataverse (Africa Rice Center, Bioversity International, CCAFS, CIAT, IFPRI, IRRI and WorldFish)

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Title Reputation Effects and the Limits of Contracting: A Study of the Indian Software Industry
 
Identifier https://doi.org/10.7910/DVN/QUL81Y
 
Creator Banerjee, Abhijit
Duflo, Esther
 
Publisher Harvard Dataverse
 
Description This paper examines evidence of the role that reputation plays in determining contractual outcomes. We conduct an empirical analysis of the Indian customized software industry, using a data set we collected containing detailed information on 230 projects carried out by 125 software firms. We propose a model ofthe industry where reputation determines contractual outcomes. The evidence supports the view that reputation matters. Ex ante contracts, as well as the outcome after ex post renegotiation, vary with firms' characteristics plausibly associated with reputation. This holds after controlling for project, client, and firm characteristics.
 
Subject Social Sciences
India
software industry
contractual outcomes
reputation
 
Date 2000
 
Contributor Jessica Morgan
 
Relation NA
 
Type Firm, project, client, and contract information
 
Source CEOs, senior person, and / or project manager at the firm