A Surprise in the Price of Knowledge
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 … [ Read more ]
Content: Article | Authors: Markus Christen, Miklos Sarvary | Source: INSEAD Knowledge | Subjects: Economics, Marketing / Sales