Srinagesh, Padmanabhan; Bradburd, Ralph; Koo, Hui-Wen - In: Journal of Industrial Economics 40 (1992) 2, pp. 223-28
This paper considers assumptions on consumer heterogeneity that can generate bidirectional distortion in a model of quality discrimination. It is shown that the profit-maximizing strategy can involve the simultaneous degradation of quality at the low end of the spectrum, while quality...