Article Abstract:
An examination of a competitive industry characterized by the presence of both a production lag and stochastic demand is undertaken. In this industry, costless endogenous information is observed by all agents, who also observe costly exogenous information. Analysis of the industry's characteristics reveals that market equilibria occurs in general conditions. Further analysis provides insights into several issues, including the transmittal of information from those who are informed to those who are not and the hierarchical and socially optimal nature of equilibrium distribution.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
The impact of national quality standards on equilibrium prices and quality standard is studied in a model of a vertically differentiated duopoly across two countries. It is assumed that the two country markets are not harmonized with regards price strategy. The model suggests that the market of the country with lesser standards is swayed by the other country's higher quality standards and pricing strategies. It is further suggested that the minimum quality standards serves as a non-tariff barrier to trade.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
Similar agglomeration patterns are found in an extension of the work of Hjorth-Andersen, in comparison of durable and non-durable goods, search and experience goods, and test organizations. Data sets of 16,257 products tested by the Austrian magazine 'Konsument' and the German magazine 'Test' are used to examine agglomeration patterns in quality space. Results indicate a tendency by manufacturers to provide consistent attribute qualities.
User Contributions:
Comment about this article or add new information about this topic: