" strategy as observed in luxury goods markets. Products can have identical quality and differ only in price and image, thereby …

differentiation, informed consumers exert a positive externality on the purchasers of the high quality good as its price decreases … when the share of informed consumers decreases. Considering also that the price of the low quality good increases with the … with pessimistic consumers we can explain demand collapses and insensitivity to price changes due to consumer suspicions …

price at which the used good can be bought at the termination of the lease. This option price cannot be controlled when the …

) and unobserved idiosyncratic choices (like secret price cuts). Buyers may use noisy signals (such as sales) in order to …

sensitive to internal profit signals and less sensitive to external price signals when managers have higher quality internal …

public information. We base this claim on two market quality measures: price efficiency, which is statistical in nature, and …