In this paper I revisit the Mussa and Rosen (1978) model. However, unlike Mussa and Rosen, I assume that there is a positive mass of the consumers of the highest possible type. I call them snobs. I prove that snobs consumers are served efficiently and the product line decreases in the mass of the serious consumers. Moreover, if the mass of the serious consumers is more than some critical level then they are the only consumers who are served at equilibrium.
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Length: 17 pages Date of creation: 2005 Date of revision: Handle: RePEc:mlb:wpaper:944
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Find related papers by JEL classification: C0 - Mathematical and Quantitative Methods - - General D8 - Microeconomics - - Information, Knowledge, and Uncertainty
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