hurting intellectual property and consumers. Is this appropriate, effective and efficient? Purpose of the article: The primary …

simplicity, we assume that there are two types of consumers, rich and poor. The income distribution is measured by the population …. Rich consumers have a higher willingness to pay for the better quality than the poor. Hence, the firms' profit depends on … the income distribution of consumers. We focus on the separating equilibrium, where goods of different qualities are sold …