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We examine the interplay of imperfect competition and incomplete information in the context of price competition among … vertical quality (e.g., consumer satisfaction), which is signaled via price, softens price competition, and that imperfect …
Persistent link: https://www.econbiz.de/10014063662
This paper examines international trade in tainted food and other low-quality products. Wefirst find that for a large class of environments, free trade is the trading system that conveysthe highest incentives to produce non-tainted high-quality goods by foreign exporters.However, free trade...
Persistent link: https://www.econbiz.de/10011379610
This paper examines international trade in tainted food and other low-quality products. We first find that for a large class of environments, free trade is the trading system that conveys the highest incentives to produce non-tainted high-quality goods by foreign exporters. However, free trade...
Persistent link: https://www.econbiz.de/10013039187
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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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