Inattentive consumers and product quality.
We present a model in which some consumers shop on the basis of price alone, without paying attention to product quality. A firm may “cheat” and offer a worthless product to exploit these inattentive consumers. In the unique symmetric equilibrium, firms follow a mixed strategy involving both price a...
| Main Authors: | , |
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| Format: | Journal article |
| Language: | English |
| Published: |
MIT Press
2009
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