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increase the product's value to others. A monopolist restricts the product portfolio and charges price premia to allocate image …
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Consider a two-product firm that decides on the quality of each product. Product quality is unknown to consumers. If the firm sells both products under the same brand name, consumers adjust their beliefs about quality subject to the performance of both products. We show that if the probability...
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choice and thereby increase the product's value to others. A monopolist restricts the product portfolio and charges price …
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that there is always a strictly positive price-quality relation in equilibrium but the classical adverse selection effects …
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