If a product has two dimensions of quality, one observable and one not, a firm can use observable quality as a signal of unobservable quality. The correlation between consumers' valuation of high quality in each dimension is a key determinant of the feasibility of such signaling. A firm may use...

If a product has two dimensions of quality, one observable and one not, a firm can use observable quality as a signal of unobservable quality. The correlation between consumers’ valuation of high quality in each dimension is a key determinant of the feasibility of such signaling. A firm may...

Häufig kann beobachtet werden, dass Konsumenten aufgrund unzureichender Produktinformationen den Preis als Qualitätssignal interpretieren und so eine vereinfachte Kaufentscheidung treffen, indem sie insbesondere hochpreisige Produkte wählen. Zum anderen genießen auch externe...