Enrichment
Why firms choose not to disclose the quality of their products
2nd February 2015
Rather than explicitly revealing information about the quality of their products and services, many firms prefer to signal quality through the prices they charge, typically working on the assumption that a high price indicates high quality. New research by Maarten Janssen and Santanu Roy provides a new explanation for why firms choose not to disclose quality directly – and explains how prices that are set to signal quality can distort actual buying decisions.
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
You might also like
Competition & Monopoly Revision Quiz
Quizzes & Activities
Pepsi and NBA strike a deal
14th April 2015
Bacon sandwich with sugar, anyone?
27th October 2015
Market Failure and Behavioural Policies - Research Assignment
7th February 2016
Dolmio and Uncle Ben's advise customers to buy less!
15th April 2016
Google fined €4.3bn for reducing consumer choice
19th July 2018
What is Price Stickiness?
Study Notes