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Stahl, Konrad; Strausz, Roland - 2011

Who does, and who should initiate costly certification by a third party under asymmetric quality information, the buyer or the seller? Our answer - the seller - follows from a nontrivial analysis revealing a clear intuition. Buyer-induced certification acts as an inspection device,...

Persistent link: https://www.econbiz.de/10010306003

Price Competition with Information Disparities in a Vertically Differentiated Duopoly

Cavaliere, Alberto - 2004

differentiation, informed consumers exert a positive externality on the purchasers of the high quality good as its price decreases … when the share of informed consumers decreases. Considering also that the price of the low quality good increases with the … with pessimistic consumers we can explain demand collapses and insensitivity to price changes due to consumer suspicions …

Persistent link: https://www.econbiz.de/10011324907

Asymmetric information and overinvestment in quality

Belleflamme, Paul; Peitz, Martin - In: European Economic Review 66 (2014) C, pp. 127-143

In a standard adverse selection world, asymmetric information about product quality leads to quality deterioration in the market. Suppose that a higher investment level makes the realization of high quality more likely. Then, if consumers observe the investment (but not the realization of...

Persistent link: https://www.econbiz.de/10010743981

Standards vs. labels with imperfect competition and asymmetric information

Baltzer, Kenneth - In: Economics Letters 114 (2012) 1, pp. 61-63

I demonstrate that providing information about product quality is not necessarily the best way to address asymmetric information problems when markets are imperfectly competitive. In a vertical differentiation model I show that a Minimum Quality Standard, which retains asymmetric information,...

Persistent link: https://www.econbiz.de/10010597210

Strategic trade policy in the presence of reputation spillovers

Das, Jayoti; DeLoach, Stephen - In: The Journal of International Trade & Economic Development 12 (2003) 2, pp. 101-116

With the emergence of North-South intra-industry trade in products where consumers value quality, exporting countries potentially face significant barriers to entry. Due to the existence of asymmetric information about new products in a foreign market, the producer's reputation becomes an...

Persistent link: https://www.econbiz.de/10005282307

Improving “national brands”: Reputation for quality and export promotion strategies

Cagé, Julia; Rouzet, Dorothée - In: Journal of International Economics 95 (2015) 2, pp. 274-290

This paper studies the effect of firm and country reputation on exports when buyers cannot observe quality prior to purchase. Firm-level demand is determined by expected quality, which is driven by the dynamics of consumer learning through experience and the country of origin's reputation for...

Persistent link: https://www.econbiz.de/10011191011

Would you like to be a prosumer? Information revelation, personalization and price discrimination in electronic markets

Morasch, Karl; Bandulet, Martin - 2003

the monopolist can commit to a maximum price before consumers decide about disclosure. …

Persistent link: https://www.econbiz.de/10010300399

Instant Efficient Pollution Abatement under Non-Linear Taxation and Asymmetric Information: The Differential Tax Revisited

Mensink, Paul - 2004

This paper analyzes incentives for polluting firms to exchange abatement cost information under the non-linear pollution tax scheme ('differential tax') introduced by Kim and Chang [J. Regul. Econom. 5, 1993, 193-197]. It shows that polluting firms have - under mild conditions - an incentive to...

Persistent link: https://www.econbiz.de/10011324997

Central bank transparency and private information in a dynamic macroeconomic model

Pearlman, Joseph G. - 2005

We investigate the role of economic transparency within the framework of one of Townsend’s models of ‘forecasting the forecasts of others’. The equilibrium has the property that ‘higher order beliefs’ are coordinated into a finite-dimensional setup that is amenable to address monetary...

Persistent link: https://www.econbiz.de/10011604501

Acquisition versus greenfield: the impact of the mode of foreign bank entry on information and bank lending rates

Claeys, Sophie; Hainz, Christa - 2006

Policy makers often decide to liberalize foreign bank entry but at the same time restrict the mode of entry. We study how different entry modes affect the interest rate for loans in a model in which domestic banks possess private information about their incumbent clients but foreign banks have...

Persistent link: https://www.econbiz.de/10011604699