Bekkers, Eddy; Francois, Joseph; Manchin, Miriam - In: European Economic Review 56 (2012) 4, pp. 848-869
goods enter the consumption set in a hierarchic demand system, and can thus be charged higher markups. A third explanation … willingness to pay theory linked to hierarchic demand. These findings on income inequality do not falsify the quality expansion … model and the ideal variety model per se. However, the results do argue for place of importance of hierarchic demand. …