Alcalá, Francisco; González-Maestre, Miguel; … - In: International Journal of Industrial Organization 37 (2014) C, pp. 109-117
-off has for product quality. We introduce a simple information accumulation process in a horizontal differentiation model with … unobservable quality. As the number of brands increases, per-brand consumer information decreases, which leads to lower average … quality. Eventually, the reduction in quality can outweigh the marginal welfare benefits of greater product variety. Thus, the …