Rozzi, Roberto; Schmitt, Stefanie Yvonne - 2024
In many markets, firms offering low-quality goods are more prominent than firms offering high-quality goods. Then …, consumers are perfectly informed about the good of the prominent low-quality firm but incur search costs to bring the high-quality … high quality. We investigate two scenarios: (i) homogeneous and (ii) heterogeneous search costs. If search costs are …