scholarly journals Overlapping Ownership, Endogenous Quality, and Welfare

2019 ◽  
Author(s):  
Duarte Brito ◽  
Ricardo Ribeiro ◽  
Helder Vasconcelos
Keyword(s):  
Endogenous Quality

Unobserved investment, endogenous quality, and trade

2013 ◽  
Vol 44 (1) ◽  
pp. 33-55 ◽  
Author(s):  
Benjamin E. Hermalin
Keyword(s):  
Endogenous Quality

Tax incidence with endogenous quality and costly bargaining: Theory and evidence from hybrid vehicle subsidies

2017 ◽  
Vol 155 ◽  
pp. 93-107 ◽  
Author(s):  
Sumeet Gulati ◽  
Carol McAusland ◽  
James M. Sallee
Keyword(s):  
Hybrid Vehicle ◽  
Tax Incidence ◽  
Bargaining Theory ◽  
Endogenous Quality

scholarly journals Dynamic market for lemons with endogenous quality choice by the seller

2014 ◽  
Vol 84 ◽  
pp. 152-162 ◽  
Author(s):  
Keiichi Kawai
Keyword(s):  
Market For Lemons ◽  
Endogenous Quality ◽  
Quality Choice

Endogenous Quality Investments in the U.S. Hospital

2021 ◽  
Author(s):  
Craig Garthwaite ◽  
Christopher Ody ◽  
Amanda Starc
Keyword(s):  
Endogenous Quality ◽  
The U.S

Optimal R&D policy and endogenous quality choice

2003 ◽  
Vol 21 (8) ◽  
pp. 1159-1178 ◽  
Author(s):  
Tsuyoshi Toshimitsu
Keyword(s):  
Endogenous Quality ◽  
Quality Choice

Endogenous Quality Choice: Price vs. Quantity Competition

1993 ◽  
Vol 41 (2) ◽  
pp. 113 ◽  
Author(s):  
Massimo Motta
Keyword(s):  
Quantity Competition ◽  
Endogenous Quality ◽  
Quality Choice

scholarly journals Product Design in Selection Markets *

2016 ◽  
Vol 131 (2) ◽  
pp. 1007-1056 ◽  
Author(s):  
André Veiga ◽  
E. Glen Weyl
Keyword(s):  
Consumer Surplus ◽  
Insurance Markets ◽  
Social Planner ◽  
Endogenous Quality ◽  
Health Insurance Markets ◽  
Product Features ◽  
Marginal Willingness To Pay ◽  
Multidimensional Types ◽  
Simple Ratio ◽  
The Cost

Abstract In selection markets, where the cost of serving consumers is heterogeneous and noncontractible, nonprice product features allow a firm to sort profitable from unprofitable consumers. An example of this “sorting by quality” is the use of down payments to dissuade borrowers who are unlikely to repay. We study a model in which consumers have multidimensional types and a firm offers a single product of endogenous quality, as in Spence (1975) . These two ingredients generate a novel sorting incentive in a firm’s first-order condition for quality, which is a simple ratio. The denominator is marginal consumer surplus, a measure of market power. The numerator is the covariance, among marginal consumers, between marginal willingness to pay for quality and cost to the firm. We provide conditions under which this term is signed and contrast the sorting incentives of a profit-maximizer and a social planner. We then use this characterization to quantify the importance of sorting empirically in subprime auto lending, analytically sign its impact in a model of add-on pricing, and calibrate optimal competition policy in health insurance markets.

scholarly journals Overlapping ownership, endogenous quality, and welfare

2020 ◽  
Vol 190 ◽  
pp. 109074
Author(s):  
Duarte Brito ◽  
Ricardo Ribeiro ◽  
Helder Vasconcelos
Keyword(s):  
Endogenous Quality

scholarly journals International Prices and Endogenous Quality *

2014 ◽  
Vol 129 (2) ◽  
pp. 477-527 ◽  
Author(s):  
Robert C. Feenstra ◽  
John Romalis
Keyword(s):  
Monopolistic Competition ◽  
Terms Of Trade ◽  
Extensive Margin ◽  
Demand Side ◽  
Endogenous Quality ◽  
Traded Goods ◽  
Price Indexes ◽  
International Prices ◽  
Estimate Quality

Abstract The unit values of internationally traded goods are heavily influenced by quality. We model this in an extended monopolistic competition framework where, in addition to choosing price, firms simultaneously choose quality subject to nonhomothetic demand. We estimate quality and quality-adjusted price indexes for 185 countries over 1984–2011. Our estimates are less sensitive to assumptions about the extensive margin of firms than are purely “demand-side” estimates. We find that quality-adjusted prices vary much less across countries than do unit values and, surprisingly, the quality-adjusted terms of trade are negatively related to countries’ level of income.

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