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We analyze an oligopolistic competition with differentiated products and qualities. The quality of a product is not …-signaling competition. There are two regimes for separating equilibrium in our model depending on the parameters. Our analysis reveals that …, in one of the separating regimes, price signaling leads to intense price competition between the firms under which not …
Persistent link: https://www.econbiz.de/10013121803
quantity-setting helps prevent market unraveling. -- Cournot competition ; quality ; duopoly ; asymmetric information ; Nash …
Persistent link: https://www.econbiz.de/10003254850
Alliances between competitors where an established firm provides access to its marketing and distribution channels are an important real-world phenomenon. We analyze a market where an established firm, firm A, produces a product of well-known quality, and a firm with an unknown brand, firm B,...
Persistent link: https://www.econbiz.de/10014028020
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Asymmetric information can distort market outcomes. I study how the online disclosure of information affects consumers' behavior and firms' incentives to upgrade product quality in markets where information is traditionally limited. I first build a model of consumer search with firms' endogenous...
Persistent link: https://www.econbiz.de/10013285520
firms' quality choice and leads to less differentiated goods. This fuels competition and may therefore deter entry. A …
Persistent link: https://www.econbiz.de/10014163570
In this paper we extend the model of vertical product differentiation to also consider information disparities about the extent of quality differences. Equilibrium prices turn out to depend not only on the share of informed consumers but also on uninformed consumers beliefs about quality...
Persistent link: https://www.econbiz.de/10014072462
instruments work as credible signals. Our findings confirm the main hypotheses derived from signaling theory as to the poor …
Persistent link: https://www.econbiz.de/10003886031
Persistent link: https://www.econbiz.de/10013418461