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 …

unique equilibrium, which is separating. Higher-quality sellers post higher prices, so price signals quality. The arrival … higher continuation values. For some parameter values, higher-quality sellers post the full-information price; for other … values these sellers have to post a higher price to keep lower-quality sellers from mimicking them. In an extension, we show …

price competition (but not on social welfare). …

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

. Consistent with our theory, vertical differentiation affects exports via sunk costs and the extensive margin, whereas the effect …

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 …