Arbeitspapier | Working paper
Image concerns and the provision of quality
In this paper, I study markets where consumers are heterogeneous with respect to both their concerns for the quality of goods and the image associated with them. Consumers with a taste for quality lend a positive image to the product of their choice and thereby increase the product's value to others. A monopolist restricts the product portfolio and charges price premia to allocate image along with quality. Heterogeneity in image concerns thereby provides a rationale for pooling consumers with differing quality preferences. Although image is correlated with a product's quality in equilibrium, an increase in the value of image may decrease quality provision. In a competitive market, premium prices are unsustainable so that image-concerned consumers buy excessive quality instead. Monopoly may therefore yield higher welfare than competition. Policy options to remedy the efficiency losses are discussed. (author's abstract)
- Extent
-
Seite(n): 86
- Language
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Englisch
- Notes
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Status: Veröffentlichungsversion; begutachtet
- Bibliographic citation
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Discussion Papers / Wissenschaftszentrum Berlin für Sozialforschung, Forschungsschwerpunkt Markt und Entscheidung, Abteilung Verhalten auf Märkten (SP II 2013-211)
- Subject
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Wirtschaft
Psychologie
Marketing
Sozialpsychologie
Motivation
Konsum
Ethik
Image
Qualität
Ware
Markt
Verbraucher
Bild
Produkt
Preispolitik
Kaufverhalten
- Event
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Geistige Schöpfung
- (who)
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Friedrichsen, Jana
- Event
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Veröffentlichung
- (who)
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Wissenschaftszentrum Berlin für Sozialforschung gGmbH
- (where)
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Deutschland, Berlin
- (when)
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2013
- Handle
- Last update
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21.06.2024, 4:27 PM CEST
Data provider
GESIS - Leibniz-Institut für Sozialwissenschaften. Bibliothek Köln. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Friedrichsen, Jana
- Wissenschaftszentrum Berlin für Sozialforschung gGmbH
Time of origin
- 2013
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