The Quality–Quantity Trade-off

McCannon, Bryan C.
January 2008
Eastern Economic Journal;Winter2008, Vol. 34 Issue 1, p95
Academic Journal
The article presents an extension to the vertical-product-differentiation model to incorporate the relationship between quality and quantity. The author lays out a model of quality selection in an imperfectly competitive market, taking into account the trade-off between quality and quantity. The author also showed that the stronger their relationship is, the more the sales shift from the high-quality producer to the low-quality producer since the former is disproportionately affected by the trade-off.


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