منابع مشابه
Price as a signal of product quality : Some experimental evidence
We separate the budgetary and non-budgetary effects of price on demand using choice data from wine tasting experiments in which consumers tasted wines of different quality accompanied by fictitious price information. The non-budgetary effect is present and nonlinear: it is strongly positive between e 3 and e 5, and undetectable between e 5 and e 8. We find a similar nonlinear price-quality rela...
متن کاملThe Quality of Price as a Quality Cue
As I discuss in this commentary, these findings are noteworthy for three reasons. First, they are novel because extant perspectives on how price–quality relationships operate do not envision the process that SCA posit. Second, they are provocative because, consistent with the opening quote attributed to Einstein, the findings suggest that perceptions can occasionally influence reality. Third, t...
متن کاملDo Low - Price Guarantees Facilitate Do Low - Price
We examine the role low-price guarantees allegedly play in supporting supracompetitive prices. We find that when firms can commit to matching or beating any lower price announced by a competitor, all Nash equilibria yield Bertrand selling prices. This result casts doubt on the robustness of the conclusions of models which restrict attention to meet-the-competition clauses only. JEL Classificati...
متن کاملPrice Guarantees , Consumer Search , and Hassle Costs
The paper deals with the competitive effects of price guarantees in a spatial duopoly where consumers can search for lower prices but have to incur hassle costs if they want to claim a price guarantee. It is shown that symmetric equilibria with and without price guarantees exist but price guarantees will have no effect on prices if search costs are low, hassle costs are high and the number of u...
متن کاملFDI as a signal of quality
This paper considers a new-product firm’s choice between exporting and foreign direct investment (FDI) to access foreign markets. We find that, when quality is unknown to buyers, the firm may choose FDI over exporting to signal quality, even though FDI is a costlier mode of access than exporting. We then use the model to study the effect of local labor requirement policy imposed by the host cou...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2004
ISSN: 1556-5068
DOI: 10.2139/ssrn.1692272