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We develop a theory of imperfect competition with loss-averse consumers. All consumers are fully informed about match … also derive implications for firm strategy and public policy concerning firms' incentives to inform consumers about their …
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I analyze a monopolistic model of quality uncertainty but with the possibility of information acquisition on the consumer side. Information is costly and its amount is chosen by the consumer. The analysis of Bayesian equilibria shows the possibility of three equilibrium classes, only one of...
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