Table of Contents

Quality-Differentiated Demand: Theory and Application

Charles F. Adams, Ohio State University, John Glenn School of Public Affairs


ECONOMICS EDUCATOR: COURSES, CASES & TEACHING eJOURNAL

"Quality-Differentiated Demand: Theory and Application" Free Download

CHARLES F. ADAMS, Ohio State University, John Glenn School of Public Affairs
Email:

Noting the absence of any systematic treatment of quality variation in an intermediate microeconomics course for undergraduates, this paper develops a framework to fill that gap. It begins with a discussion of how quality considerations manifest themselves in consumer choice. The concepts of weak and latent separability are used to derive a demand structure for quality-differentiated goods, one that is consistent with the principle of vertical product differentiation and that allows for a mix of quality levels in a well-ordered market basket. The second part of the paper takes up the question of optimal quality variation under alternative market structures, revealing a more complex critique of monopoly distortions once quality considerations are accounted for.

^top

About this eJournal

This eJournal is devoted to advancing the scholarship of teaching and learning economics encouraging contributors to combine ideas in economics with current ideas about teaching and learning, in a way that is public, open to critique, and in a form on which others can build in a timely manner. Unlike refereed journals, this electronic journal does not subject submissions to review but will publish abstracts as works in progress with links to the full-text working papers in the SSRN database. Eligible submissions could provide descriptions of innovative courses, case studies, student activities and other teaching materials and information related to the manner in which economics is taught or its teaching assessed at the post-secondary level. (Note: Suitable material submitted to the Journal of Economic Education (http://www.Indiana.edu/~econed) will be considered automatically for inclusion in Economics Educator, thus, giving potential JEE authors worldwide visibility for their work during the extensive JEE refereeing and editorial process.)

Editor: William Walstad, University of Nebraska at Lincoln

Submissions

To submit your research to SSRN, sign in to the SSRN User HeadQuarters, click the My Papers link on left menu and then the Start New Submission button at top of page.

Distribution Services

If your organization is interested in increasing readership for its research by starting a Research Paper Series, or sponsoring a Subject Matter eJournal, please email: RPS@SSRN.com

Distributed by

Economics Research Network (ERN), a division of Social Science Electronic Publishing (SSEP) and Social Science Research Network (SSRN)

Directors

ERN SUBJECT MATTER EJOURNALS

MICHAEL C. JENSEN
Harvard Business School, Social Science Electronic Publishing (SSEP), Inc., National Bureau of Economic Research (NBER), European Corporate Governance Institute (ECGI)
Email: mjensen@hbs.edu

Please contact us at the above addresses with your comments, questions or suggestions for ERN-Sub.

Advisory Board

Economics Educator: Courses, Cases & Teaching eJournal

SAM ANTHONY ALLGOOD
Associate Professor of Economics, University of Nebraska at Lincoln - Department of Economics

WILLIAM L. GOFFE
Associate Professor of Economics, SUNY Oswego - Department of Economics

PAUL W. GRIMES
Dean, Kelce College of Business, Pittsburg State University, Emeritus Professor of Economics, Mississippi State University - College of Business

KIMMARIE MCGOLDRICK
Professor of Economics, University of Richmond - E. Claiborne Robins School of Business

MICHAEL W. WATTS
Professor of Economics and Director of the Center for Economic Education, Purdue University - Department of Economics