English, Article, Journal or magazine article edition: Price Competition when Product Quality is Uncertain Isabel GRILO; Xavier WAUTHY

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Bookmark: http://trove.nla.gov.au/version/4467
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Price Competition when Product Quality is Uncertain
Author
  • Isabel GRILO
  • Xavier WAUTHY
Physical Description
  • preprint
Notes
  • We consider a market where consumers differ in risk aversion. Two firms sell products of uncertain quality. We characterize the Nash equilibriura in prices and show that, due to consumers' heterogeneity, less reliable products are likely to coexist with more reliable ones in equilibrium. Moreover, choosing to increase the risk component is in some cases an equilibrium strategy.
  • RePEc:ctl:louvre:2000043
Language
  • English
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