Differentiated credence goods and price competition

Jean Gabszewicz and Joana Resende

Information Economics and Policy, 2012, vol. 24, issue 3, 277-287

Abstract: This paper analyses price competition between two firms producing horizontally and vertically differentiated goods. These are assumed to be credence goods, as consumers can hardly ascertain the quality of the commodities. To illustrate the model, we adapt it to represent a newspaper industry with two outlets, when the population of readers have preferences both on the political stance of the newspapers and on the accuracy of the news they dispatch.

Keywords: Product differentiation; Credence goods; Media economics (search for similar items in EconPapers)
JEL-codes: D82 L15 L20 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:iepoli:v:24:y:2012:i:3:p:277-287

DOI: 10.1016/j.infoecopol.2012.09.001

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