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.
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- Hueth, Brent & Marcoul, Philippe & Lawrence, John D., 2007.
"Grader Bias in Cattle Markets? Evidence from Iowa,"
Staff General Research Papers
11465, Iowa State University, Department of Economics.
- 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).
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- 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.
- Stivers, Andrew E., 2006. "Optimal number of standards under economies of scope in quality," Economics Letters, Elsevier, vol. 90(3), pages 368-372, March.
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