Price and Quality in a New Product Monopoly

S-Tier
Journal: Review of Economic Studies
Year: 1994
Volume: 61
Issue: 4
Pages: 773-789

Authors (2)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In a signal-extraction model of consumer behaviour, higher prices signal higher-quality products for a new product monopoly, even without cost asymmetries across different qualities. Moreover, higher-quality products earn greater expected profits, and the monopolist has an incentive to provide even transient improvements in quality. Finally, the monopolist has a positive incentive to conduct market research about quality, and produces more information than is socially optimal.

Technical Details

RePEc Handle
repec:oup:restud:v:61:y:1994:i:4:p:773-789.
Journal Field
General
Author Count
2
Added to Database
2026-01-25