We consider an oligopolistic market where firms compete in price and quality and where consumers are heterogeneous in …-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 … business to rival firms with higher probability. Some of the revealing equilibria involve high degree of market power (price …

One of the reasons why regulators are hesitant about permitting price competition in healthcare markets is that it may … admissions to Dutch hospitals, we find no evidence that increased exposure to price competition reduces quality measured by …

This paper studies the relationship between three key elements of the marketing mix, namely, price, product, and … distortions imply that (i) even if CDA increases the market price, the degree of market power need not increase and (ii) CDA may … yield a welfare loss even if it leads to a lower market price. …