Wine quality perception involves both intrinsic and extrinsic attributes and is related to consumer liking and acceptability of a product. The main purpose of this paper is to evaluate the actual role of the region of origin cue on the experienced, expected, and perceived quality of wine, as...

We analyze firms’ incentives to disclose deficiencies of their goods when consumers lack information. We distinguish two types of information: First, only some consumers are aware of the existence of deficiencies, which reduce the quality of the goods. Second, only some consumers have the...

This paper explores how social interactions among consumers shape markets. In a two-country model, consumers meet and exchange information about the quality of the goods. As information spreads, the demands evolve, affecting the prices and quantities manufactured by profit-maximizing firms. We...