Notice of RetractionThe Role of firm reputation in market transaction

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

Whether firms should use markets or produce internally has long been in academic debate. We construct a mathematical model and empirically analyze how firm reputation impacts transactions under China´s transitional economy. We find that reputed firms prefer market transaction more than internal production since they can benefit from contracting in less cost with stakeholder s with their good reputations. Further, we investigate the interaction effect of institution and reputation and find that reputed firms rely on more market transaction in less developed institution.