Consumer sorting of vertically differentiated goods
This paper shows the conditions for consumer sorting to be profitable. Sorting of low quality goods dampens their substitutability with high quality goods and can raise firm's profit even when sorting lowers profit from low quality sales considered alone.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- Chalfant, James A. & James, Jennifer S. & Lavoie, Nathalie & Sexton, Richard J., 1999. "Asymmetric Grading Error And Adverse Selection: Lemons In The California Prune Industry," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(01), July.
- Acharyya, Rajat, 2005. "Quality discrimination among income constrained consumers," Economics Letters, Elsevier, vol. 86(2), pages 245-251, February.
- Brent Hueth & John D. Lawrence & Philippe Marcoul, 2004.
"Grader Bias in Cattle Markets? Evidence from Iowa,"
Center for Agricultural and Rural Development (CARD) Publications
04-wp355, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Marcoul, Philippe & Lawrence, John D. & Hueth, Brent, 2006. "Grader Bias In Cattle Markets? Evidence From Iowa," 2006 Annual meeting, July 23-26, Long Beach, CA 21123, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Hueth, Brent & Marcoul, Philippe & Lawrence, John D., 2007. "Grader Bias in Cattle Markets? Evidence from Iowa," Staff General Research Papers Archive 11465, Iowa State University, Department of Economics.
- Barzel, Yoram, 1977. "Some Fallacies in the Interpretation of Information Costs," Journal of Law and Economics, University of Chicago Press, vol. 20(2), pages 291-307, October.
- Stivers, Andrew E., 2006. "Optimal number of standards under economies of scope in quality," Economics Letters, Elsevier, vol. 90(3), pages 368-372, March.
- Stivers, Andrew, 2003. "Quality standards with exogenously distributed quality," Economics Letters, Elsevier, vol. 80(1), pages 131-136, July.
- Ferrier Peyton M, 2007. "Cherry Picking: Should Sellers Let Buyers Sort?," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(1), pages 1-32, December.
When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:109:y:2010:i:1:p:11-13. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.