downgrades quality whereas the seller sometimes upgrades it. Our model of targeting with endogenous product quality provides some … new insights into the way the transition from mass to specialized advertising can affect market outcomes. Quality …

We consider an oligopolistic market where firms compete in price and quality and where consumers are heterogeneous in … knowledge: some consumers know both the prices and quality of the products offered, some know only the prices and some know …-inefficiency of the price/quality offers. But, better price/quality combinations are signalled with lower prices in one type and with …

Firms signal high quality through high prices even if the market structure is highly competitive and price competition … is severe. In a symmetric Bertrand oligopoly where products may differ only in their quality, production cost is … increasing in quality and the quality of each firm’s product is private information (not known to consumers or to other firms …

estimation of the parameters in an auxiliary model. The learning scheme employed by the agents belongs to the class of stochastic …

This essay links some of my own work on expectations, learning and bounded rationality to the inspiring ideas of Jean …-Michel Grandmont. In particular, my work on consistent expectations and behavioral learning equilibria may be seen as formalizations of … JMG's ideas of self-fulfilling mistakes. Some of our learning-to-forecast laboratory experiments with human subjects have …

This paper considers competitive search equilibrium in a market for a good whose quality differs across sellers. Each … seller knows the quality of the good that he or she is offering for sale, but buyers cannot observe quality directly. We thus … unique equilibrium, which is separating. Higher-quality sellers post higher prices, so price signals quality. The arrival …

that the monopoly platform does not introduce distortions over and above those arising from the market power of the …

likely to occur when this distribution is rather flat. In particular, monopoly production results in the oversupply of …