each seller's quality becomes private information. Entry has the tendency to lower prices, which may lead to adverse …In markets for experience or credence goods adverse selection can drive out higher quality products and services. This … negative implication of asymmetric information about product quality for trading and welfare, poses the question of how such …

I analyze a market where there is a homogeneous good, which quality is chosen, and therefore known, by a single … producer. Consumers do not know the quality of the good but they use their acquaintances in order to obtain information about … of quality (given by technological knowledge) that can be chosen, then, the producer may choose lower levels of quality …

quality of their products. Firms first choose their locations (or product characteristics) and then compete in prices. Under … full information, it is shown that, whereas the low-quality firm prefers to locate as far as possible from its competitor …, the same is not true for the high-quality firm, unless the quality difference is small enough. The paper then suggests an …

I analyze a market where there is a homogeneous good, which quality is chosen, and therefore known, by a single … producer. Consumers do not know the quality of the good but they use their acquaintances in order to obtain information about … of quality (given by technological knowledge) that can be chosen, then, the producer may choose lower levels of quality …