Chatterjee, Tanmoyee; Raychaudhuri, Ajitava - In: Journal of Economic Development 29 (2004) 1, pp. 51-84
This paper analyses the effects of a change in distribution of income on quality choice made by firms producing search goods. It is assumed that willingness to pay for quality of consumers is an increasing function of income. Under the assumption that distribution of income is positively skewed,...