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This paper analyzes optimal product lines when consumers differ both in their taste for quality and in their desire for social image. The market outcome features partial pooling and product differentiation that is not driven by heterogeneous valuations for quality but by image concerns. A...
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-actor explanation for the effect by arguing that price endings may serve an informational role, signaling to customers which prices are …
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to consumers. We examine the signaling role of retail price in a decentralized channel. Our normative model demonstrates …
Persistent link: https://www.econbiz.de/10012890002
to consumers. We examine the signaling role of retail price in a decentralized channel. Our normative model demonstrates …
Persistent link: https://www.econbiz.de/10012890892
We present a diagrammatic and step-by-step analysis of price signaling quality. Because quality is a continuum on the …
Persistent link: https://www.econbiz.de/10013115026
determinant of the feasibility of such signaling. A firm may use price alone as a signal, or price and quality together. Both … signals tend to be used when the market is very uninformed, whereas price signaling alone tends to be used when the market is … low observable quality is always an indication that unobservable quality is high. -- Signaling ; quality …
Persistent link: https://www.econbiz.de/10003986085
determinant of the feasibility of such signaling. A firm may use price alone as a signal, or price and quality together. Both … signals tend to be used when the market is very uninformed, whereas price signaling alone tends to be used when the market is … low observable quality is always an indication that unobservable quality is high. -- Signaling ; quality …
Persistent link: https://www.econbiz.de/10008905517