Consider a two-product firm that decides on the quality of each product. Product quality is unknown to consumers. If the firm sells both products under the same brand name, consumers adjust their beliefs about quality subject to the performance of both products. We show that if the probability that low quality will be detected is in an intermediate range, the firm produces high quality under um...

literal: Let p be a proposition. Then p and -p are literals. clause: A clause is a disjunction of literals. Horn Clause: A Horn Clause is a clause in which there is at most one positive literal. definite clause: A definite clause is a Hom Clause in which there is exactly one positive literal. A definite clause such as can also be written as We call pi the head of the clause, and the conjunction...