Utilizamos cookies propias y de terceros, analizando sus hábitos de navegación en nuestra página web, con la finalidad de garantizar la calidad, seguridad y mejora de los servicios ofrecidos a través de la misma. En los casos en que el usuario no manifieste expresamente si acepta o no la instalación de las cookies, pero continúe utilizando nuestra página web, se entenderá que éste ha dado su consentimiento, informándole expresamente de la posibilidad de bloquear o eliminar las cookies instaladas en su equipo mediante la configuración de las opciones del navegador. Puede obtener más información a este respecto consultando nuestra Política de Cookies Acepto
Ivie
VALENCIAN INSTITUTE OF ECONOMIC RESEARCH

Research article: Information and quality with an increasing number of brands

International Journal of Industrial OrganizationAuthor: Francisco Alcalá, Miguel González-Maestre and Irene Martínez-Pardina

Title: Information and quality with an increasing number of brands

Source: International Journal of Industrial Organization

Abstract: We analyze the potential trade-off between product variety and consumer information and the implications this trade-off has for product quality. We introduce a simple information accumulation process in a horizontal differentiation model with unobservable quality. As the number of brands increases, per-brand consumer information decreases, which leads to lower average quality. Eventually, the reduction in quality can outweigh the marginal welfare benefits of greater product variety. Thus, the continuous increase in the number of brands requires a parallel improvement in consumer information mechanisms. It remains to be answered how efficiently new information mechanisms respond to this requirement in each market.

View article

Recommended citation:

Alcalá, F., M. González-Maestre and I. Martínez (2014): "Information and quality with an increasing number of brands", International Journal of Industrial Organization, 37, November, pp. 109-117.

Further articles