model featuring firms that sell goods of heterogeneous quality levels to consumers who are heterogeneous in their income and … thus their marginal willingness to pay for quality increments. We derive closed-form solutions for the unique pricing game … interaction of consumer income and good quality. We derive two testable predictions. First, the relative price of high qualities …

This paper explores patterns of quality differentiation and specialization relying on model-level panel data of retail … comparing market shares of identical models across different markets. We measure quality at the model level, account for varying … willingness-to-pay for quality at different levels of income, and link quality measures to objective model attributes. Using …

quality but lower horizontal quality. We also document distortions that arise in our framework. Specifically, we find that in … the market equilibrium, firms tend to underinvest in horizontal quality but overinvest in vertical quality compared to the … losses due to the quality distortions. …

This paper explores patterns of quality differentiation and specialization relying on model-level panel data of retail … comparing market shares of identical models across different markets. We measure quality at the model level, account for varying … willingness-to pay for quality at different incomes, and link quality measures to objective model attributes. Using originally …

only generates unbiased estimates if input and output quality variation within and between observation units is accounted … for. I review and classify state-of-the-art methods to address quality and price variation in production function … estimation. Even if inputs and outputs are observed in quantities, unobserved quality variation might bias production function …