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Quality Uncertainty Mitigates Product Differentiation
Oleh:
Bester, Helmut
Jenis:
Article from Bulletin/Magazine
Dalam koleksi:
The Rand Journal of Economics vol. 29 no. 4 (1998)
,
page 828-844.
Topik:
quality
;
quality
;
mitigates
;
product differentiation
Ketersediaan
Perpustakaan Pusat (Semanggi)
Nomor Panggil:
RR10.2
Non-tandon:
1 (dapat dipinjam: 0)
Tandon:
tidak ada
Lihat Detail Induk
Isi artikel
I present the idea that imperfect information about the (vertical) quality characteristics of goods reduces the sellers' incentives for horizontal product differentiation. As a result, the equilibrium outcome may be characterized by "minimum differentiation." In a spatial framework this implies that firms tend to choose head - on competition by agglomerating at the same location. It may happen that consumers benefit from imperfect information about product quality.
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