Joint Product Signals of Product Quality
AbstractIn the absence of other information about the quality of an experience good, the price of a jointly produced search good provides consumers with a signal of the former good’s quality.. This hypothesis provides an explanation for the heretofore unexplained pricing policies found in Barron’s and Umbeck’s (1984) empirical investigation of gasoline retailing.
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Bibliographic InfoPaper provided by Ball State University, Department of Economics in its series Working Papers with number 199101.
Length: 10 pages
Date of creation: Jan 1991
Date of revision: Apr 1991
Publication status: Published in Atlantic Economic Journal 19 no. 4 (1991): 38-41.
Search good; Experience good; Product quality signal; Gasoline retailing;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Spence, A Michael, 1973. "Job Market Signaling," The Quarterly Journal of Economics, MIT Press, vol. 87(3), pages 355-74, August.
- Milgrom, Paul & Roberts, John, 1986.
"Price and Advertising Signals of Product Quality,"
Journal of Political Economy,
University of Chicago Press, vol. 94(4), pages 796-821, August.
- Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-29, March-Apr.
- Nelson, Philip, 1974. "Advertising as Information," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 729-54, July/Aug..
- Barron, John M & Umbeck, John R, 1984. "The Effects of Different Contractual Arrangements: The Case of Retail Gasoline Markets," Journal of Law and Economics, University of Chicago Press, vol. 27(2), pages 313-28, October.
- Frank, Robert H, 1985. "The Demand for Unobservable and Other Nonpositional Goods," American Economic Review, American Economic Association, vol. 75(1), pages 101-16, March.
- George, Donald A. R., 2000. "A model of endogenous quality management," Journal of Economics and Business, Elsevier, vol. 52(3), pages 289-304.
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