The Good, the Bad, and the Complex: Product Design with Imperfect Information

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2023
Volume: 15
Issue: 2
Pages: 187-226

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

We study the joint determination of product quality and complexity. In our model complexity affects how difficult it is for an agent to acquire information about product quality. An agent can accept or reject a product proposed by a designer, who can affect the quality and the complexity of the product. We find that complexity is not a necessary feature of low-quality products. An increase in designer–agent alignment leads to more complex but better-quality products. However, higher product demand or lower competition among designers leads to more complex and lower-quality products. We relate our findings to the existing empirical evidence.

Technical Details

RePEc Handle
repec:aea:aejmic:v:15:y:2023:i:2:p:187-226
Journal Field
General
Author Count
3
Added to Database
2026-01-24