Rob, Rafael; Sekiguchi, Tadashi - In: RAND Journal of Economics 37 (2006) 2, pp. 341-361
We consider a repeated duopoly game where each firm privately chooses its investment in quality, and realized quality is a noisy indicator of the firm's investment.We focus on turnover equilibria in which a low-quality realization is penalized by lowering future demand of the firm that delivered...