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Unformatted text preview: These two companies were not associated with each other in any way. The only thing they had in common was a similar name. As are result of the Imperial Foods fiasco, Imperial Sandwich Company received numerous phone calls and letters that were not Sandwich Company received numerous phone calls and letters that were not flattering. Businesses that confused Imperial Sandwich Company with Imperial Foods; canceled orders. Convenient stores refused to do business with them anymore. Imperial Sandwich Company quickly faced financial problems. The company was salvaged only after changing its name to disassociate itself from Imperial Foods. How does Imperial Sandwich Company recover its loses due to Imperial Foods lack of rational behavior? We have a negative externality. 19...
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This note was uploaded on 12/29/2011 for the course ECO 210 taught by Professor Malls during the Fall '10 term at SUNY Stony Brook.
- Fall '10