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Experts vs. discounters: consumer free riding and experts withholding advice in markets for credence goods
Dulleck, Uwe; Kerschbamer, Rudolf - Institut für Volkswirtschaftslehre, … - 2005
This paper studies price competition between experts and discounters in a market for credence goods. While experts can … giving any advice. The unobservability of diagnosis effort induces experts to use their tariffs as signaling devices. This … makes them vulnerable to competition by discounters. We explore the conditions under which experts survive competition by …
Persistent link: https://www.econbiz.de/10005800603
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Price discrimination via the choice of distribution channels
Dulleck, Uwe; Kerschbamer, Rudolf - Institut für Volkswirtschaftslehre, … - 2005
This article studies the use of different distribution channels as an instrument of price discrimination in credence goods markets. In credence goods markets, where consumers do not know which quality of the good or service they need, price discrimination proceeds along the dimension of quality...
Persistent link: https://www.econbiz.de/10005273087