| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5072206 | Games and Economic Behavior | 2012 | 19 Pages |
Abstract
⺠Two firms compete in price and quality. ⺠Consumers have heterogeneous information over firmsʼ offers. ⺠An equilibrium, in which a price perfectly indicates quality, exists and is unique. ⺠In the equilibrium higher prices indicate higher quality but lower utility. ⺠The equilibrium exists as long as there are enough uninformed consumers.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Andrei Dubovik, Maarten C.W. Janssen,