subjects' Willingness-To-Accept for the bottle before and after the market. Subjects either participate in a small or a large … dou- ble auction market. The variance in subjects' Willingness-To-Accept shrinks within trading groups. Our evidence … supports the idea that markets have the potential to mitigate a bias. However, the market is not needed: our anchoring …

Firms signal high quality through high prices even if the market structure is highly competitive and price competition … market power when other firms are of high quality. High quality firms charge higher prices than low quality firms but lose … business to rival firms with higher probability. Some of the revealing equilibria involve high degree of market power (price …

We consider an oligopolistic market where firms compete in price and quality and where consumers are heterogeneous in …