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Complaint, as the expression of customer dissatisfaction with the quality of products or services, is very valuable information. Well-built system for collecting, processing and analysis of complaints allows organizations to create the information base for making decisions based on facts. This...
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In many cases consumers cannot observe firms' investment in quality or safety, but have only beliefs on the average quality of the industry. In addition, the outcome of the collective investment game of the firms may be stochastic since firms cannot control perfectly the technology or external...
Persistent link: https://www.econbiz.de/10011025757
In markets for many fruits, vegetables, and an increasing number of imported goods, consumers cannot discern the quality of a product prior to purchase and can never identify its producer. Producing high-quality, safe goods is costly for a firm and raises the collective reputation for quality...
Persistent link: https://www.econbiz.de/10008543804
In many cases consumers cannot observe firms' investment in quality or safety, but have only beliefs on the average quality of the industry. In addition, the outcome of the collective investment game of the firms may be stochastic since firms cannot control perfectly the technology or external...
Persistent link: https://www.econbiz.de/10010652388
each seller's quality becomes private information. Entry has the tendency to lower prices, which may lead to adverse … selection. The implied price collapse limits the amount of entry so that high prices are sustained in equilibrium, which results … measures of concentration and less entry than would be expected. …
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