Signalling product quality: when is price relevant?
Article Abstract:
The role of price as a signal of product quality is explored. It is found that when price acts as a signal of quality, the estimate is less elastic because it is reflecting two contradicting effects. However, the demand function becomes more price elastic if price stops being used as a signal. This could provide clarification regarding the results of Abbe-Decarroux research which show that high-price theater seats were price inelastic and low-priced seats were price elastic.
Publication Name: Journal of Economic Behavior & Organization
Subject: Economics
ISSN: 0167-2681
Year: 1996
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Expectations driven distortions in the foreign exchange market
Article Abstract:
The phenomenon of lasting deviations of the exchange rate from its fundamental value in the foreign exchange market is explained. A chartists-fundamentalists model is developed, where rational agents determine their speculative investment positions by choosing between technical and fundamental trading rules.
Publication Name: Journal of Economic Behavior & Organization
Subject: Economics
ISSN: 0167-2681
Year: 2003
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Buyer experimentation and introductory pricing
Article Abstract:
A new study investigates the pricing choices of a monopolist seller in a dual-period model in which the seller and buyers are initially unsure about quality.
Publication Name: Journal of Economic Behavior & Organization
Subject: Economics
ISSN: 0167-2681
Year: 2001
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