It's good to be bad: the low quality advantage in consumer search markets

DOI10.1016/J.ECONLET.2022.110518MaRDI QIDQ2158388zbMATH OpenOpenAlexFDO

Authors Stuart Baumann, Margaryta Klymak

Publication date 26 July 2022

Published in Economics Letters (Search for Journal in Brave)

Copyright license Creative Commons Attribution 4.0 International

Full work available at URL https://doi.org/10.1016/j.econlet.2022.110518

zbMATH Keywords

qualityconsumer searchprice perception

Mathematics Subject Classification ID

Microeconomic theory (price theory and economic markets) (91B24)

Recommendations

• Price versus quantity: Market-clearing mechanisms when consumers are uncertain about quality
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Cites work

• Multiproduct retailing
• Reexamination of the perfectness concept for equilibrium points in extensive games

Cited in

(2)

• Selling to consumers who cannot detect small differences
• Consumer sorting of vertically differentiated goods

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