Quality uncertainty mitigates product differentiation

被引:50
作者
Bester, H [1 ]
机构
[1] Free Univ Berlin, D-1000 Berlin, Germany
关键词
D O I
10.2307/2556096
中图分类号
F [经济];
学科分类号
02 ;
摘要
I present the idea that imperfect information about the (vertical) quality characteristics of goods reduces the sellers' incentives for horizontal product differentiation. As a result, the equilibrium outcome may be characterized by "minimum differentiation." In a spatial framework this implies that firms tend to choose head-err competition by agglomerating at the same location. It may happen that consumers benefit from imperfect information about product quality.
引用
收藏
页码:828 / 844
页数:17
相关论文
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