Quality differentiation and firms’ choices between online and physical markets
We study firms’ choices between online and physical markets with respect to product quality and competition, and exam- ine consequences of transparency policies on price competition and market structure. We investigate two contrasting forces. First, since consumers cannot fully inspect an online prod- uct’s quality prior to purchase, conventional wisdom and some of the literature suggest that this attracts low-quality prod- ucts to the online market (a p o oling effect). On the other hand, the...[Show more]
|Collections||ANU Research Publications|
|Source:||International Journal of Industrial Organization|
|Chen Y et al Quality differentiation and 2017.pdf||683.1 kB||Adobe PDF||Request a copy|
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