Economists have emphasized the role of dissipative advertising and price as signals of quality. Most works, however …, limit the number of types to two options: high and low quality. Yet, production costs and quality both result from R … quality and marginal cost are both subject to chance. In a static framework (no repeat purchases and no informed consumers …

This paper analyzes persuasive advertising and pricing in oligopoly if firms sell differentiated products and consumers … conformity. In equilibrium, both quality and cost leaders choose higher advertising intensities and charge higher prices than …

' behavior and firms' incentives to upgrade product quality in markets where information is traditionally limited. I first build … a model of consumer search with firms' endogenous quality decisions. In this model, lower search costs reallocate demand … toward higher-quality producers, raising firms' incentives to upgrade quality, and more so for firms selling ex-ante lower-quality …

We study the effects of horizontal mergers when firms compete on quality and price. Two key factors are identified: (i …) the magnitude of variable quality costs, and (ii) the relative magnitudes of cross-quality and cross-price effects on … demand. The merging firms will increase (reduce) both quality and price if the degree of competition is sufficiently stronger …

We consider a brand manufacturer who can offer, next to its high-quality product, also a decoy good and faces … competition by a competitive fringe that produces low quality. We show that the brand manufacturer optimally provides a decoy good … optimal decoy good is designed such that the superior quality of the brand manufacturers’ main product and the unattractive …

quality of VW diesel vehicles. We consider a classical model for adverse selection and sorting to derive an empirically … testable hypothesis about the impact of observable quality on the supply of used cars. We test the hypothesis with data …

potential insurance value associated with the acquisition of sequestration services, and that pay attention to landholders …