We consider an oligopolistic market where firms compete in price and quality and where consumers are heterogeneous in …-inefficiency of the price/quality offers. But, better price/quality combinations are signalled with lower prices in one type and with …

simultaneously decrease the retail price and increase infrastructure quality. Second, we derive conditions under which reducing both … retail price and infrastructure quality relative to the integrated monopoly outcome increases welfare. Third, we argue that …

simultaneously decrease the retail price and increase infrastructure quality. Second, we derive conditions under which reducing both … retail price and infrastructure quality relative to the integrated monopoly outcome increases welfare. Third, we argue that …

overvalues a product attribute - quality or price - that stands out in a particular choice situation. In a highly competitive low-price … environment like on an online platform, consumers focus more on price rather than quality. Especially if the market power of local … (physical) retailers is low, price tends to be salient also in the local store, which is unfavorable for the high …

overvalues a product attribute - quality or price - that stands out in a particular choice situation. In a highly competitive low-price … environment like on an online platform, consumers focus more on price rather than quality. Especially if the market power of local … (physical) retailers is low, price tends to be salient also in the local store, which is unfavorable for the high …

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 …

We document new facts about the evolution of firm performance and prices in international markets, and propose a theory …