Lee, Sanghoon; Ries, John; Somerville, C. Tsuriel - In: Journal of Urban Economics 73 (2013) 1, pp. 43-56
We propose a theory of how repairs affect prices under imperfect information. Our model reveals that repairs may lower prices because, if repairs are not always successful, they may reveal negative information about product quality. We also show that the price effect of repairs is increasing in...