monopoly problem when the price imperfectly signals quality to the uninformed buyers. We then study the effect of noise on … output, market price, information flows, and expected profits. The presence of noise may reduce the informational externality …

monopoly problem when the price imperfectly signals quality to the uninformed buyers. We then study the effect of noise on … output, market price, information flows, and expected profits. The presence of noise may reduce the informational externality …

We present a diagrammatic and step-by-step analysis of price signaling quality. Because quality is a continuum on the … equilibrium. We first study the behavior of the monopoly when price conveys information about quality. We then show the effect of …

valuations for quality but by image concerns. A typical monopoly outcome is a two-tier product line resembling a "masstige …This paper analyzes optimal product lines when consumers differ both in their taste for quality and in their desire for …" strategy as observed in luxury goods markets. Products can have identical quality and differ only in price and image, thereby …

quality signaling or as a coordination device is described and discussed. The chapter then moves on to an analysis of the …

In a monopoly setting where consumers cannot observe the quality of the product we show that free samples which are of … a lower quality than the marketed digital goods are used together with high prices as signals for a superior quality if … the number of informed consumers is small and if the difference between the high and the low quality is not too small …

We embed signaling in the classical Cournot model in which several firms sell a homogeneous good. The quality is known … quantity decision. We characterize the unique signaling Cournot equilibrium in which the price signals quality to the … to all the firms, but only to some buyers. The quantity-setting firms can manipulate the price to signal quality. Because …

to the next period with the hope of learning the unknown quality. We analyze the monopolist's pricing and "waiting …When a durable good of uncertain quality is introduced to the market, some consumers strategically delay their buying … equilibria. We also find two types of separating equi- libria: one where high type signals its quality by choosing a different …

to the next period with the hope of learning the unknown quality. We analyze the monopolist's pricing strategies when …When a durable good of uncertain quality is introduced to the market, some consumers strategically delay their buying …. We also find two types of separating equilibria: one where high type signals its quality by choosing a different price …