Two commonplace business assumptions are that lower quality products must attract buyers with lower prices, and that firms enjoy higher profits in a monopoly than in a competitive market. But information is not a commonplace product. So, should information providers with a low-quality product offer price discounts and fear competition? In this paper, Markus Christen and Miklos Sarvary present evidence that prices for reliable information can actually be lower than prices for unreliable information.
Content: Article
Authors: Markus Christen, Miklos Sarvary
Source: INSEAD Knowledge
Subjects: Economics, Marketing / Sales
Authors: Markus Christen, Miklos Sarvary
Source: INSEAD Knowledge
Subjects: Economics, Marketing / Sales
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