全球智库信息集成服务系统(G2TT): A New Model of Quality

G2TT

来源类型	Working Paper
规范类型	报告
DOI	10.3386/w6580
来源ID	Working Paper 6580
	A New Model of Quality
	Kala Krishna; Tor Winston
发表日期	1998-05-01
出版年	1998
语种	英语
摘要	We develop a new model of quality to capture the idea that even if a customer chooses to purchase a product, it may fail to deliver.' In this event, the customer may wish to choose some other product. We model this as a two stage game where firms first choose quality and then price. We find that in equilibrium, the high quality firm (the one with a higher probability of being able to deliver') will always make higher profits than the low quality one even if costs of quality are sharply increasing. Our work thus provides a reason for high quality niches to be inherently more profitable. The implications for welfare and equilibrium under free entry are also studied.
主题	Microeconomics ; Market Structure and Distribution ; Welfare and Collective Choice
URL	https://www.nber.org/papers/w6580
来源智库	National Bureau of Economic Research (United States)
引用统计
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/564092
推荐引用方式 GB/T 7714	Kala Krishna,Tor Winston. A New Model of Quality. 1998.