-concerned consumers buy excessive quality instead. By restricting the product space, monopoly allows for more efficient allocation of … markets where consumers are heterogeneous with respect to both their concerns for the quality of goods and the image … associated with buying them. Consumers with a taste for quality lend a positive image to the product of their choice and thereby …

addition, the paper finds that it is feasible in the monopoly optimum that the bundle for low-demand agents is more expensive …