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 …

' behavior and firms' incentives to upgrade product quality in markets where information is traditionally limited. I first build … a model of consumer search with firms' endogenous quality decisions. In this model, lower search costs reallocate demand … toward higher-quality producers, raising firms' incentives to upgrade quality, and more so for firms selling ex-ante lower-quality …

' behavior and firms' incentives to upgrade product quality in markets where information is traditionally limited. I first build … a model of consumer search with firms' endogenous quality decisions. In this model, lower search costs reallocate demand … toward higher-quality producers, raising firms' incentives to upgrade quality, and more so for firms selling ex-ante lower-quality …

downgrades quality whereas the seller sometimes upgrades it. Our model of targeting with endogenous product quality provides some … new insights into the way the transition from mass to specialized advertising can affect market outcomes. Quality …

downgrades quality whereas the seller sometimes upgrades it. Our model of targeting with endogenous product quality provides some … new insights into the way the transition from mass to specialized advertising can affect market outcomes. Quality …

downgrades quality whereas the seller sometimes upgrades it. Our model of targeting with endogenous product quality provides some … new insights into the way the transition from mass to specialized advertising can affect market outcomes. Quality …

downgrades quality whereas the seller sometimes upgrades it. Our model of targeting with endogenous product quality provides some … new insights into the way the transition from mass to specialized advertising can affect market outcomes. Quality …

Economists have emphasized the role of dissipative advertising and price as signals of quality. Most works, however …, limit the number of types to two options: high and low quality. Yet, production costs and quality both result from R … quality and marginal cost are both subject to chance. In a static framework (no repeat purchases and no informed consumers …

Economists have emphasized the role of dissipative advertising and price as signals of quality. Most works, however …, limit the number of types to two options: high and low quality. Yet, production costs and quality both result from R … quality and marginal cost are both subject to chance. In a static framework (no repeat purchases and no informed consumers …

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