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The underlying reason is that experienced consumers’ quality expectations are independent of the seller’s quality claims; thus, the seller must cater to experienced consumers’ quality expectations. Consequently, the low-quality seller (𝑞≤𝑞𝐸𝑙q≤qlE) will moderately overstate its quality ...
The underlying reason is that experienced consumers’ quality expectations are independent of the seller’s quality claims; thus, the seller must cater to experienced consumers’ quality expectations. Consequently, the low-quality seller (𝑞≤𝑞𝐸𝑙q≤qlE) will moderately overstate its quality ...