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Our study proposes a novel mechanism to reduce information asymmetry about product quality between buyers and sellers. Product testing organizations like Consumer Reports (US) and Stiftung Warentest (Germany) seek to reduce this asymmetry by providing credible information. However, limited...
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Using quality information for analysis, or staying with just quantity based information is always a good base for debate: Either relying on quantitative measurements and data (which is sad to be more accurate and easier to rely on) or use quantitative measurements (which is sad to be human /...
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We conduct a laboratory experiment that tests two fundamental predictions unique to salience theory. If an agent … purchases one of two vertically differentiated products, salience theory makes the following two distinct predictions. First, it … strongly support both predictions of salience theory. …
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