Published September 1986
| Published
Report
Open
Experimental Studies of Markets with Buyers Ignorant of Quality Before Purchase: When do "Lemons" Drive out High Quality Products? A Report to the Federal Trade Commission
Abstract
Experiments indicated that if sellers could not develop reputations for poor quality, then the market would consist entirely of poor quality products. The need to attract re-purchase is not sufficient incentive to have the seller build a reputation for supplying good quality, while the imposition of a requirement for truthful advertising or labelling is sufficient.
Additional Information
The authors would like to thank Gerry Butters for help in designing the original pilot experiments, Louis Wilde for advice during the early experiments and Richard Craswell for detailed comments on the interpretation and presentation of the results. We are also in debt to Pamela Armiger for putting the manuscript in final form. Any remaining errors we intend to blame on her.Attached Files
Published - lynchmillerplottporter86.pdf
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- CaltechAUTHORS:20140325-114643079
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2014-04-18Created from EPrint's datestamp field
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