leads to higher average prices. We test the theory using detailed data for Brazilian exporters and find that the destination …

A monopolist producing vertically differentiated durable goods can offer in each period a sequence of price … that cannot commit to future price-quality menus is bounded below by a strictly positive value independent of the discount …

and expected price-quality offers. The monopolist designs a sequence of price-quality menus to segment the market. We … consider the Markov Perfect Equilibrium (MPE) of a game where the monopolist is unable to commit to future price-quality menus …

overvalues a product attribute - quality or price - that stands out in a particular choice situation. In a highly competitive low-price … environment like on an online platform, consumers focus more on price rather than quality. Especially if the market power of local … (physical) retailers is low, price tends to be salient also in the local store, which is unfavorable for the high …

choice of lower-quality products dominates the price distortion effect resulting from credit constraints. However, a … competing theory based on the alternative assumption that quality is exogenous across firms would predict completely opposite …

competing products, the price of individual products tends to fall over the product lifetime. This holds true for more than 90 …% of the expenditure items underlying the U.K. consumer price index and has important normative implications. Constructing … a sticky price model featuring a product life cycle and rich amounts of heterogeneity, we explain how the optimal …