Download This PaperToo Much of a Good Thing: Quality-Differentiated Demand and Monopoly Bias
10 Pages Posted: 20 Apr 2020 Last revised: 31 Dec 2020
Date Written: December 31, 2020
Abstract
Previous teaching notes focused on the logic and mechanics of a quality-differentiated linear demand structure. This note takes up the question of potential bias in how markets respond to quality-related aspects of consumer choice. Earlier examples demonstrated instances where monopoly interests might conflict with those of consumers in matters of quality choice. Here the question concerns a more general propensity toward excessively high or low levels of quality under monopoly market structures.
Keywords: A1, A22, D01, D21
Suggested Citation: Suggested Citation
Adams, Charles, Too Much of a Good Thing: Quality-Differentiated Demand and Monopoly Bias (December 31, 2020). Available at SSRN: https://ssrn.com/abstract=3573750 or http://dx.doi.org/10.2139/ssrn.3573750
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