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 …

conveys full information about the quality of the good to uninformed buyers. Deceiving the uninformed buyers by charging a … high price and mimicking a high quality is not profitable when the competitive fringe is large enough. Since a higher price … effect of asymmetric information and learning on the equilibrium outcomes. More uninformed buyers increases the price …

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 …

We address the issue of risk aversion in a competitive equilibrium when some buyers engage in learning and information … is conveyed through the price system. Specifically, since the learning process yields uncertainty, we study 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 …

structure. From situations where standard competition may be possible, they shift the market towards monopoly, betting on their …

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