Dasgupta, Kunal; Mondria, Jordi - University of Toronto, Department of Economics - 2015
market. Exporters use price to signal their quality. It is now well established that in such a model with full information … elasticity of substitution. In contrast, in a model with asymmetric information, we show that within the class of separating … determinants of GFT. We show that the actual GFT under asymmetric information could be almost 2.5 times higher than that measured …