monopoly problem when the price imperfectly signals quality to the uninformed buyers. We then study the effect of noise on … output, market price, information flows, and expected profits. The presence of noise may reduce the informational externality …

monopoly problem when the price imperfectly signals quality to the uninformed buyers. We then study the effect of noise on … output, market price, information flows, and expected profits. The presence of noise may reduce the informational externality …

conveys full information about the quality of the good to uninformed buyers. Deceiving the uninformed buyers by charging a … high price and mimicking a high quality is not profitable when the competitive fringe is large enough. Since a higher price … effect of asymmetric information and learning on the equilibrium outcomes. More uninformed buyers increases the price …

We present a diagrammatic and step-by-step analysis of price signaling quality. Because quality is a continuum on the … equilibrium. We first study the behavior of the monopoly when price conveys information about quality. We then show the effect of …

We study the issue of integrating real and financial decisions in a monopoly firm with risk-averse decision-makers. To …

We address the issue of risk aversion in a competitive equilibrium when some buyers engage in learning and information … is conveyed through the price system. Specifically, since the learning process yields uncertainty, we study the effect of …

; this generates a search rule that accounts for learning systematically. In this search environment, a multiproduct seller …

valuations for quality but by image concerns. A typical monopoly outcome is a two-tier product line resembling a "masstige …This paper analyzes optimal product lines when consumers differ both in their taste for quality and in their desire for …" strategy as observed in luxury goods markets. Products can have identical quality and differ only in price and image, thereby …

-quantity pairs in each period. The quality of the product is initially unknown, and more information is generated through … consumers' beliefs about product quality, and characterize the changes in prices and quantities resulting from information …-valuation buyers from the market, even if the product's underlying quality is in fact high …