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Two firms produce a good with a horizontal and a vertical characteristic called quality. The difference in the unobservable quality levels determines how the firms share the market. We consider two scenarios: In the first one, firms disclose quality; in the second one, they send costly signals...
Persistent link: https://www.econbiz.de/10009395943
We analyze the economic consequences of disclosure and regulation within a context of significant information asymmetry …
Persistent link: https://www.econbiz.de/10005100646