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Price Competition When Consumers Are Uncertain about Which Firm Sells Which Quality

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Author Info
Gabszewicz, Jean J
Grilo, Isabel

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Abstract

In this paper we analyze the properties of price equilibria in a duopoly market where firms sell vertically differentiated products, consumers being uncertain about which firm sells which quality. Both existence and properties of price equilibria are characterized by the beliefs of the consumers' population about the distribution of quality between firms. Copyright 1992 by MIT Press.

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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Economics & Management Strategy.

Volume (Year): 1 (1992)
Issue (Month): 4 (Winter)
Pages: 629-50
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Handle: RePEc:bla:jemstr:v:1:y:1992:i:4:p:629-50

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  1. Bonroy, Olivier & Constantatos, Christos, 2003. "Consumer Uncertainty about which Firm Sells the High Quality: on the Slow Penetration of Some Credence Goods," Cahiers de recherche 0307, GREEN. [Downloadable!]
  2. Olivier Bonroy & Christos Constantatos, 2008. "On the use of labels in credence goods markets," Journal of Regulatory Economics, Springer, vol. 33(3), pages 237-252, June. [Downloadable!] (restricted)
    Other versions:
  3. John Crespi & Stéphan Marette, 2003. "“Does Contain†vs. “Does Not Containâ€: Does it Matter which GMO Label is Used?," European Journal of Law and Economics, Springer, vol. 16(3), pages 327-344, November. [Downloadable!] (restricted)
  4. Giuseppe Moscarini & Marco Ottaviani, 1998. "Price Competition for an Informed Buyer," Cowles Foundation Discussion Papers 1199, Cowles Foundation, Yale University. [Downloadable!]
    Other versions:
  5. Bontems, P. & Meunier, V., 2006. "Advertising and price signaling of quality in a duopoly with endogenous locations," Economics Working Paper Archive (Toulouse) 200603, French Institute for Agronomy Research (INRA), Economics Laboratory in Toulouse (ESR Toulouse). [Downloadable!]
  6. Philippe Bontems & Valérie Meunier, 2005. "Advertising and Price Signaling of Quality in a Duopoly with Endogenous Locations," CIE Discussion Papers 2005-10, University of Copenhagen. Department of Economics. Centre for Industrial Economics. [Downloadable!]
  7. Gerhard Orosel & Klaus G. Zauner, 2004. "Vertical Product Differentiation When Quality is Unobservable to Buyers," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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