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The Quality–Quantity Trade-off

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  • Bryan C McCannon

    (Economics Department, Wake Forest University, 123 Carswell Hall, Box 7505, Winston-Salem, NC 27109, USA.)

Abstract

The standard vertical-product-differentiation model assumes that quality and quantity are independent choices. That is, the choice of quality is separated from the decision of the number of units to produce. For certain products this is not appropriate. This note presents an extension to the vertical-product-differentiation model to incorporate the relationship between quality and quantity. Eastern Economic Journal (2008) 34, 95–100. doi:10.1057/palgrave.eej.9050009

Suggested Citation

  • Bryan C McCannon, 2008. "The Quality–Quantity Trade-off," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 34(1), pages 95-100, Winter.
    • Handle: RePEc:pal:easeco:v:34:y:2008:i:1:p:95-100
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    Cited by:

    1. Belleflamme,Paul & Peitz,Martin, 2015. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9781107687899.
    2. Kristian Strmenik & Friederike Wall & Christian Mitsch & Gernot Mödritscher, 2021. "Volume allocation in multi-sourcing: effects of the quantity–quality trade-off," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 29(2), pages 753-771, June.
    3. Olmos, Marta Fernández & Grazia, Cristina & Perito, Maria Angela, 2011. "Quality and Double Sided Moral Hazard in Share Contracts," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(1).
    4. Olmos, Marta Fernandez & Martinez, Jorge Rosell, 2011. "The Quality-Quantity Trade-off in the Principal-Agent Framework," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 11(1), pages 1-12, January.

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