Prices as signals of quality
I consider the workings, under free entry, of some plausible mechanisms enforcing product quality when it is not readily observed by buyers, but is chosen by sellers: there is a moral hazard problem to be overcome. In equilibrium, uninformed buyers can often take price as indicating quality. This is...
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University of Oxford
1981
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| Online Access: | http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.255575 |