The paper provides a brief exposition on the logic underlying demand for quality-differentiated products. The argument builds and extends on basic constructs from undergraduate microeconomics followed by a brief critique of market responses to consumer preferences for quality variation....

The paper begins with a discussion of how quality considerations manifest themselves in consumer choice. The concept of latent separability is used to develop a utility structure for quality-differentiated goods, one consistent with the principle of vertical product differentiation and one that...

This paper takes up the matter of quality choice in undergraduate microeconomics and is divided into two sections. The first develops a conceptual framework underlying a linear demand structure for quality-differentiated goods. The second section incorporates a quality-differentiated demand...