Competitive pricing despite search costs when lower price signals quality
Sign Up to like & getrecommendations! Published in 2018 at "Economic Theory"
DOI: 10.1007/s00199-020-01247-3
Abstract: The Diamond paradox demonstrates that when learning prices is costly for consumers, each firm has market power. However, making firms privately informed about their quality and cost restores competitive pricing if quality and cost are… read more here.
Keywords: quality; despite search; price; competitive pricing ... See more keywords