The Price-Quality Relationship under Monopoly and Competition

Donald George

Research output: Contribution to journalArticlepeer-review

Abstract

Screening and signalling models have both been used to analyze the price-quality relationship. Both types of model have their shortcomings. An alternative approach is presented which involves endogenizing the quality control process. Firms voluntarily provide a warranty contract for their products and this, in turn, generates an incentive to control quality. Monopolistic and competitive markets are compared in respect of warranties, quality control, and the price-quality relationship. Copyright 1996 by Scottish Economic Society.
Original languageEnglish
Pages (from-to)99-112
Number of pages14
JournalScottish Journal of Political Economy
Volume43
Issue number1
Publication statusPublished - Jan 1996

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