Reputations matter, even for China

In my talk at the Cato Institute today the claim that reputations don't seem to be important in disciplining China was very briefly raised. Anyway, talk about timing, here was a story that I just happened upon:

Whittle Shortline Railroad , a company in Louisiana, Mo., that makes wooden trains and trucks, posted a banner on its Web site several weeks ago: “100 percent kid-safe,” it read, “with lead-free paints.” Mike Whitworth, the company’s owner, said the recent recalls of Chinese-made toys found to contain lead in their paint has been good for his business. Very good. . . . .