presentation
Source: Scitovszky (1944-45)
Back in the day,
an apple was an apple.
Source: Scitovszky (1944-45)
Today, it‘s a bit more complicated...
As a consumer you have a great
information disadvantage.
Source: Akerlof (1970)
How can you find out the true
quality of a product?
Source: Akerlof (1970)
Source: Cooper (1984)
Source: Cooper (1984)
Source: Cooper (1984)
SIGNALING QUALITY WITH PRICES
ALEXANDER KRAEMER | BOCHUM | AUGUST 2010
Student of Management and Economics (Diplom), ID.no. 108 004 216 923
[email protected]
!
Theoretical Literature
!
Firms I Consumers
!
Empirical Literature
!
Overview I Aspects
!
Resumé
!
References
Agenda
Theoretical
Literature
Why signal?
the informed the uninformed
Source: Koku (1995)
Source: Koku (1995)
Why signal?
information gap
the informed the uninformed
Why signal?
Building a bridge over
the information gap
Source: Koku (1995)
An example: Job application
Source: Spence (1973)
!
Indices
!
Gender, age or race
!
Ex ante observable information
!
Signals
!
Work experience, education or motivation
!
Ex post obeserable information
!
Can be manipulated by applicant
!
Manipulation of signals might incur costs
Source: Spence (1973)
Price
Time
Skimming Strategy
Penetration Strategy
Costs
Source: Robinson (1975), Koku (1995)
Pricing strategies
Source: Cooper (1984)
Mixed qualities
!
Non-constant costs can play important role
!
Average costs can rise when sales fall
!
Reduction of false signaling firms
!
Increase of information on quality
!
Leaving some false firms, but also good
High quality firm
Low quality firm
!
High costs
!
Willing to restrict sales volume
!
Will lose less sales volume
!
Over time less costly to signal
quality
!
Low costs
!
Fakes quality
!
Will lose great sales volume
!
Over time high costs to signal
false quality
Source: Bagwell & Riordan (1991)
High and declining prices
Freeriding low-quality firms
Source: Alpert et al. (1993)
!
High information asymmetry
!
Nothing prevents signaling with high prices
!
Price does not reveal the true quality of a product
The use of price as a
signal depends on...
!
Consumers‘ ability to detect quality variation
!
Level of price awareness of consumers
!
Availability of other cues of quality
!
Actual quality variation
!
Price variation
Source: Zeithaml (1988)
Source: Jones & Hudson (1996)
!
Consumers rely on more than one signal
!
There is an optimum number of signals
!
The more expensive the product
the more signals the consumer uses
When is price relevant?
Source: Zeithaml (1988)
Relationship between price, quality and value
Source: Wolinsky (1983); Gabor & Granger (1966)
!
Consumers have certain quality expectancies
!
Consumers penalize firms who signal the wrong
quality
!
Existence of expectancy equilibria
!
Prices may serve as signals which differentiate
quality levels
!
Consumers have qualities they will spend money on
Prices signal true quality
in every equilibrium
Empirical
Literature
Price-Quality Correlations
Source: Steenkamp (1988)
!
Most products price and objective quality are positively correlated
!
Most correlations are weak and vary over time
!
Strength of correlation depends on two factors
!
Type of product (durable vs. nondurable)
!
Degree of price despersion in a product category
!
Price is a poor market signal of quality for most products
Price-Quality Relations
Source: Faulds & Lonial (2001)
Price-Quality Relations
Source: Faulds & Lonial (2001)
Cultural differences
!
Prices have an allocative effect in china
!
No quality is transported
!
Low prices have same effect as high prices
Source: Erevelles et al. (2001)
What Price Quality?
Source: Horowitz & Lockshin (2002)
!
What cues do consumers use to select wine?
!
Quality ratings by James Halliday as dependant variable
!
Analysis of Australian and New Zealand wines
!
Influence of cues is different for each of the wines
!
e.g. Regional influence on wine quality and the winery style
!
Some producers might be better than others
!
Positive relationship between price and quality
!
Relationship is not linear
!
Increase in price does not explain equal incraese in quality
What Price Quality?
Source: Horowitz & Lockshin (2002)
All prices in Australian Dollars
(1 AUSD = 0.72 EUR as of 19.08.2010)
!
Consumers go into a store with a style and a price range and then
look for wines within those parameters
How do consumers use signals to
assess quality?
Source: Gergaud & Livat (2007)
!
Analysis 6,000 European wine consumers
!
Speciality of paper: connoisseurs & nonconnoisseurs
!
Do all consumers use signals in the same way?
How do consumers use signals to
assess quality?
Source: Gergaud & Livat (2007)
Prices as Quality Signals
Source: Schnabel & Storchmann (2010)
!
Following Bagwell & Riordan (1991)
!
price signals respond positively to wine quality
!
price signals respond negatively to increasing information
!
Usage of two Datasets
!
Main Wine Trade Fair & Gault Millau wine guide for Germany
!
Small fraction of uninformed buyers
Prices as Quality Signals
Source: Schnabel & Storchmann (2010)
!
R
e
s
u
m
é
!
Quality is signaled by prices
!
Theoretically:
!
the long run will increase the level of quality
!
(decrease of low quality firms due to costs)
!
Empirically:
!
Price-quality correlations are weak and vary over time
!
Different cultures, different price-quality perceptions
!
Consumers know what they want to buy
!
State of information matters
Resumé
Thank you for your attention.
Questions?
REFERENCES
Akerlof, G.A.
Almenberg, J. and Dreber, A.
Alpert, F.; Wilson, B. and
Elliott, M.T.
Ashenfelter, O.
Ashenfelter, O.
Bagwell, K. and Riordan,
M.H.
Benfratello, L.; Piacenza, M.
and Sacchetto, S.
Bergemann, D. and Välimaki,
J.
Caves, R.E. and Greene, D.P.
Chin, M.-C.; Weaver, R.D.
Cooper, R.; Ross, T.W.
Daughety, A.F.; Reinganum,
J.F.
Daughety, A.F.; Reinganum,
J.F.
Daughety, A.F.; Reinganum,
J.F.
Dener, E.
Edwards, F.; Spawton, T.
Ervelles, S.; Roy, A. and Yip,
L.S.C.
Faulds, D.J. and Lonial, S.C.
Folwell, R.; Bales, T. and
Edwards, C.
Gabor, A. and Granger,
C.W.J.
Gergaud, O.; Livat, F.
Gerstner, E.
Goldstein, R; Almenberg, J.;
Dreber, A.; Emerson, J.W.;
Herschkowitsch, A. and Katz,
J.
The Market for „Lemons“: Quality Uncertainty and Market Mechanism The Quarterly Journal of Economics 1970 Vol. 84, No. 3 pp. 488-500
When does the Price affect the Taste? Results from a Wine Experiment American Association of Wine Economics 2009 Working Paper No. 35 pp. 1-12
Price Signaling: does it ever work? Journal of Consumer Marketing1993 Vol. 10, No. 4 pp. 4-14
Predicting the Quality and Prices of Bordeaux Wines American Association of Wine Economics 2007 Working Paper No. 4 pp. 1-20
Predicting the Quality and Prices of fine wine The Economic Journal 2010 Vol. 5, No. 1 pp. 174-184
High and Declining Prices Signal Product Quality The American Economic Review1991 Vol. 81, No. 1 pp. 224-239
Taste or reputation: What drives market prices in the wine industry? Estimation
of a hedonic model for Italian premium wines
Applied Economics 1009 Vol. 49 pp. 2197-2209
Dynamic pricing of new experience goods Journal of Political Economy 2006 Vol. 114 pp. 713-743
Brands' quality levels, prices, and advertising outlays: empirical evidence on
signals and information costs
International Journal of Industrial Organization 1996 Vol. 14 pp. 29-52
Contracting, Signalling of Uncertain Quality, and Price Volatility? Prepared for presentation at the Xth EAAE Congress 2002 pp. 1-15
Prices, Product Qualities and Asymmetric Information: The Competitive Case Review of Economic Studies 1984 Vol. 51, No. 2 pp. 197-207
Communicating Quality: a unified model of disclosure and signalling RAND Journal of Economics 2008 Vol. 39, No. 4 pp. 973-989
Imperfect competition and quality signalling RAND Journal of Economics 2007 Vol. 39 pp. 163-183
Competition and Confidentiality: Signaling Quality in a Duopoly When There is
Universal Private Information
Games and Economic Behavior 2007 Vol. 58 pp. 94-120
Signalling Quality Through Prices in a durable Market www.ecares.org/ecaresdocuments/ws/summerschool2009/papers/dener.pdf www.ecares.org/ecaresdocuments/ws/summerschool2009/papers/dener.pdf www.ecares.org/ecaresdocuments/ws/summerschool2009/papers/dener.pdf www.ecares.org/ecaresdocuments/ws/summerschool2009/papers/dener.pdf
Pricing in the Australian Wine Industry Emeral Backfiles 2007
The universality of the signal theory for products and services Journal of Business Research 2001 Vol. 52 pp. 175-187
Price-Quality Relationships of Nundurable Consumer Products: A European
and United States Perspective
Journal of Economic and Social Research 2001 Vol. 3, No. 1 pp. 59-76
Cost economies and economic impacts of pricing and product mix decisions in
premium table wine wineries
Journal of Wine Research 2001 Vol. 12, No. 2 pp. 111-124
Prices as an indicator of Quality: Report on an Enquiry Economica 1966 pp. 43-70
How do consumers use signals do assess quality? American Association of Wine Economics 2007 Working Paper No. 3 pp. 1-22
Do Higher Prices Signal Higher Quality? Journal of Marketing Research1985 Vol. 22, No. 2 pp. 209-215
Do More Expensive Wines Taste Better? Evidence from a Large Sample of
Blind Tastings
American Association of Wine Economics 2008 Working Paper No. 16 pp. 1-14
Horowitz, I.; Lockshin, L.
Hubert, S.; Storchmann, K.
Janssen, M.C.W.; Roy, S.
Jones, G.; Storchmann, K.
Jones, P. and Hudson, J.
Koku, P.S.
Landon, S.; Smith, C.E.
Lecocq, S. and Visser, M.
Lee, L; Frederick, S. and
Ariely, D.
Lima, T.
Lockshin, L.S. and Rhodus,
W.T.
Milgrom, P.; Roberts, J.
Obermiller, C.
Rao, A.R.
Render, B. and O‘Connor, T.S.
Roberts, P.W. and Reagans,
R.
Rosenman, R.E. and Wilson,
W.W.
Rosenthal, R.W.
Rothshild, M.
Schmalensee, R.
Scitovszky, T.
Shapiro, C.
Spence, M.
Spence, M.
Steenkamp, J.-B. E.M.
Stigler, G.J.
Stiglitz, J.E.
Weil, R.L.
Wolinsky, A.
Yehezkel, Y.
Zeithaml, V.A.
Zhao, H.
What Price Quality? An Investigation into the Prediction of Wine-quality Ratings Journal of Wine Research 2002 Vol. 13, No. 1 pp. 7-22
Prices as Quality Signals: Evidence from the Wine Market Journal of Agricultural & Food Industrial Organization 2010 Vol. 8 pp. 1-21
Signalling Quality Through Prices in an Oligopolyhttp://faculty.smu.edu/sroy/quality.pdfhttp://faculty.smu.edu/sroy/quality.pdf
Wine market prices and investment under uncertainty Agricultural Economics 2001 Vol. 26 pp. 115-133
Signalling Product Quality: When is Price Relevant? Journal of Economic Behavior & Organisation 1996 Vol. 30 pp. 257-266
Price signaling: does it ever work? Journal of Consumer Marketing 1995 Vol. 12, No. 1 pp. 45-49
Quality Expectations, Reputation, and Price Southern Economic Journal 1998 Vol. 64, No. 3 pp. 628-647
What Determines Wine Prices: Objective vs. Sensory Characteristics Journal of Wine Economics 2006 Vol. 1, No. 1 pp. 42-56
Try It, You‘ll Like It - The Influence of Expectation, Consumption, and Revelation
on Preferences for Beer
Psychological Science 2006 Vol. 17, No. 12 pp. 1054-1058
Price and Quality in the California Wine Industry: An Emipiral Investigation California State University, Hayward 1999 pp. 1-50
The Effect of Price and Oak Falvor on Percieved Wine Quality Emeral Backfiles 2007 pp. 13-25
Price and Advertising Signals of Product Quality Journal of Political Economy 1986 Vol. 94, No. 4 pp. 796-821
When do Consumers infer in Quality from Price? Advances in Consumer Research 1988 Vol. 15 pp. 304-310
The Quality of Price as a Quality Cue Journal of Marketing Research 2005 Vol. XLII pp. 401-405
The Influence of Price, Store Name, and Brand Name on Perception of Product
Quality
Journal of the Academy of Marketing Science 1976 Vol. 4, No. 4 pp. 722-730
Critical Exposure and Price-Quality Relationships for New World WInes in the
U.S. Market
Journal of Wine Economics 2007 Vol. 2, No. 1 pp. 56-69
Quality Differentials and Prices: Are Cherries Lemons? The Journal of Industrial Economics 1991 Vol. 39, No. 6 pp. 649-658
A Model in which an Increas in the Numer of Sellers LEads to a Higher Price Econometrica 1980 Vol. 48, No. 6 pp. 1575-1579
Searching for the Lowest Price When the Distribution of Prices is Unknown The Journal of Political Economy1974 Vol. 82, No. 4 pp. 689-711
A Model of Advertising and Product Quality The Journal of Political Economy1978 Vol. 86, No. 3 pp. 485-503
Some Consequences of the Habit of Judging Quality by Price The Review of Economic Studies 1945 Vol. 12, No. 2 pp. 100-105
Premiums for High Quality Products as Returns to Reputations The Quarterly Journal of Economics 1983 Vol. 98, No. 4 pp. 659-680
Signaling in Retrospect and the Informational Structure of Markets The American Economic Review2002 Vol. 92, No. 3 pp. 434-459
Job Market Signaling The Quarterly Journal of Economics 1973 Vol. 87, No. 3 pp. 355-374
The Relationship between Price and Quality in the Marketplace De Economist 1988 Vol. 136 pp. 491-507
The Economics of Information The Journal of Political Economy1961 Vol. 69, No. 3 pp. 213-225
The Contributions of the Economics of Information to the Twentieth Century
Economics
The Quarterly Journal of Economics 2000 pp. 1441-1478
Analysis of Reserve and Regular Bottlings: Why Pay for a Difference Only the
Critics Claim to Notice?
Chance 2005 Vol. 18, No. 3 pp. 9-15
Prices as signals of product quality Review of Economic Studies 1983 Vol. 50 pp. 647-658
Signaling Quality in an Oligopoly when some consumers are informed Journal of Economics & Management Strategy 2008 Vol. 17, No. 4 pp. 937-972
Consumer Perceptions of Price, Quality, and Value: A Means-End Model and
Synthesis of Evidence
Journal of Marketing 1988 Vol. 52 pp. 2-22
Raising Awareness and Signaling Quality to Uninformed Consumers: A Price-
Advertising Model
Marketing Science 2000 Vol. 19, No. 4 pp. 390-396
doc_210764625.pdf
Source: Scitovszky (1944-45)
Back in the day,
an apple was an apple.
Source: Scitovszky (1944-45)
Today, it‘s a bit more complicated...
As a consumer you have a great
information disadvantage.
Source: Akerlof (1970)
How can you find out the true
quality of a product?
Source: Akerlof (1970)
Source: Cooper (1984)
Source: Cooper (1984)
Source: Cooper (1984)
SIGNALING QUALITY WITH PRICES
ALEXANDER KRAEMER | BOCHUM | AUGUST 2010
Student of Management and Economics (Diplom), ID.no. 108 004 216 923
[email protected]
!
Theoretical Literature
!
Firms I Consumers
!
Empirical Literature
!
Overview I Aspects
!
Resumé
!
References
Agenda
Theoretical
Literature
Why signal?
the informed the uninformed
Source: Koku (1995)
Source: Koku (1995)
Why signal?
information gap
the informed the uninformed
Why signal?
Building a bridge over
the information gap
Source: Koku (1995)
An example: Job application
Source: Spence (1973)
!
Indices
!
Gender, age or race
!
Ex ante observable information
!
Signals
!
Work experience, education or motivation
!
Ex post obeserable information
!
Can be manipulated by applicant
!
Manipulation of signals might incur costs
Source: Spence (1973)
Price
Time
Skimming Strategy
Penetration Strategy
Costs
Source: Robinson (1975), Koku (1995)
Pricing strategies
Source: Cooper (1984)
Mixed qualities
!
Non-constant costs can play important role
!
Average costs can rise when sales fall
!
Reduction of false signaling firms
!
Increase of information on quality
!
Leaving some false firms, but also good
High quality firm
Low quality firm
!
High costs
!
Willing to restrict sales volume
!
Will lose less sales volume
!
Over time less costly to signal
quality
!
Low costs
!
Fakes quality
!
Will lose great sales volume
!
Over time high costs to signal
false quality
Source: Bagwell & Riordan (1991)
High and declining prices
Freeriding low-quality firms
Source: Alpert et al. (1993)
!
High information asymmetry
!
Nothing prevents signaling with high prices
!
Price does not reveal the true quality of a product
The use of price as a
signal depends on...
!
Consumers‘ ability to detect quality variation
!
Level of price awareness of consumers
!
Availability of other cues of quality
!
Actual quality variation
!
Price variation
Source: Zeithaml (1988)
Source: Jones & Hudson (1996)
!
Consumers rely on more than one signal
!
There is an optimum number of signals
!
The more expensive the product
the more signals the consumer uses
When is price relevant?
Source: Zeithaml (1988)
Relationship between price, quality and value
Source: Wolinsky (1983); Gabor & Granger (1966)
!
Consumers have certain quality expectancies
!
Consumers penalize firms who signal the wrong
quality
!
Existence of expectancy equilibria
!
Prices may serve as signals which differentiate
quality levels
!
Consumers have qualities they will spend money on
Prices signal true quality
in every equilibrium
Empirical
Literature
Price-Quality Correlations
Source: Steenkamp (1988)
!
Most products price and objective quality are positively correlated
!
Most correlations are weak and vary over time
!
Strength of correlation depends on two factors
!
Type of product (durable vs. nondurable)
!
Degree of price despersion in a product category
!
Price is a poor market signal of quality for most products
Price-Quality Relations
Source: Faulds & Lonial (2001)
Price-Quality Relations
Source: Faulds & Lonial (2001)
Cultural differences
!
Prices have an allocative effect in china
!
No quality is transported
!
Low prices have same effect as high prices
Source: Erevelles et al. (2001)
What Price Quality?
Source: Horowitz & Lockshin (2002)
!
What cues do consumers use to select wine?
!
Quality ratings by James Halliday as dependant variable
!
Analysis of Australian and New Zealand wines
!
Influence of cues is different for each of the wines
!
e.g. Regional influence on wine quality and the winery style
!
Some producers might be better than others
!
Positive relationship between price and quality
!
Relationship is not linear
!
Increase in price does not explain equal incraese in quality
What Price Quality?
Source: Horowitz & Lockshin (2002)
All prices in Australian Dollars
(1 AUSD = 0.72 EUR as of 19.08.2010)
!
Consumers go into a store with a style and a price range and then
look for wines within those parameters
How do consumers use signals to
assess quality?
Source: Gergaud & Livat (2007)
!
Analysis 6,000 European wine consumers
!
Speciality of paper: connoisseurs & nonconnoisseurs
!
Do all consumers use signals in the same way?
How do consumers use signals to
assess quality?
Source: Gergaud & Livat (2007)
Prices as Quality Signals
Source: Schnabel & Storchmann (2010)
!
Following Bagwell & Riordan (1991)
!
price signals respond positively to wine quality
!
price signals respond negatively to increasing information
!
Usage of two Datasets
!
Main Wine Trade Fair & Gault Millau wine guide for Germany
!
Small fraction of uninformed buyers
Prices as Quality Signals
Source: Schnabel & Storchmann (2010)
!
R
e
s
u
m
é
!
Quality is signaled by prices
!
Theoretically:
!
the long run will increase the level of quality
!
(decrease of low quality firms due to costs)
!
Empirically:
!
Price-quality correlations are weak and vary over time
!
Different cultures, different price-quality perceptions
!
Consumers know what they want to buy
!
State of information matters
Resumé
Thank you for your attention.
Questions?
REFERENCES
Akerlof, G.A.
Almenberg, J. and Dreber, A.
Alpert, F.; Wilson, B. and
Elliott, M.T.
Ashenfelter, O.
Ashenfelter, O.
Bagwell, K. and Riordan,
M.H.
Benfratello, L.; Piacenza, M.
and Sacchetto, S.
Bergemann, D. and Välimaki,
J.
Caves, R.E. and Greene, D.P.
Chin, M.-C.; Weaver, R.D.
Cooper, R.; Ross, T.W.
Daughety, A.F.; Reinganum,
J.F.
Daughety, A.F.; Reinganum,
J.F.
Daughety, A.F.; Reinganum,
J.F.
Dener, E.
Edwards, F.; Spawton, T.
Ervelles, S.; Roy, A. and Yip,
L.S.C.
Faulds, D.J. and Lonial, S.C.
Folwell, R.; Bales, T. and
Edwards, C.
Gabor, A. and Granger,
C.W.J.
Gergaud, O.; Livat, F.
Gerstner, E.
Goldstein, R; Almenberg, J.;
Dreber, A.; Emerson, J.W.;
Herschkowitsch, A. and Katz,
J.
The Market for „Lemons“: Quality Uncertainty and Market Mechanism The Quarterly Journal of Economics 1970 Vol. 84, No. 3 pp. 488-500
When does the Price affect the Taste? Results from a Wine Experiment American Association of Wine Economics 2009 Working Paper No. 35 pp. 1-12
Price Signaling: does it ever work? Journal of Consumer Marketing1993 Vol. 10, No. 4 pp. 4-14
Predicting the Quality and Prices of Bordeaux Wines American Association of Wine Economics 2007 Working Paper No. 4 pp. 1-20
Predicting the Quality and Prices of fine wine The Economic Journal 2010 Vol. 5, No. 1 pp. 174-184
High and Declining Prices Signal Product Quality The American Economic Review1991 Vol. 81, No. 1 pp. 224-239
Taste or reputation: What drives market prices in the wine industry? Estimation
of a hedonic model for Italian premium wines
Applied Economics 1009 Vol. 49 pp. 2197-2209
Dynamic pricing of new experience goods Journal of Political Economy 2006 Vol. 114 pp. 713-743
Brands' quality levels, prices, and advertising outlays: empirical evidence on
signals and information costs
International Journal of Industrial Organization 1996 Vol. 14 pp. 29-52
Contracting, Signalling of Uncertain Quality, and Price Volatility? Prepared for presentation at the Xth EAAE Congress 2002 pp. 1-15
Prices, Product Qualities and Asymmetric Information: The Competitive Case Review of Economic Studies 1984 Vol. 51, No. 2 pp. 197-207
Communicating Quality: a unified model of disclosure and signalling RAND Journal of Economics 2008 Vol. 39, No. 4 pp. 973-989
Imperfect competition and quality signalling RAND Journal of Economics 2007 Vol. 39 pp. 163-183
Competition and Confidentiality: Signaling Quality in a Duopoly When There is
Universal Private Information
Games and Economic Behavior 2007 Vol. 58 pp. 94-120
Signalling Quality Through Prices in a durable Market www.ecares.org/ecaresdocuments/ws/summerschool2009/papers/dener.pdf www.ecares.org/ecaresdocuments/ws/summerschool2009/papers/dener.pdf www.ecares.org/ecaresdocuments/ws/summerschool2009/papers/dener.pdf www.ecares.org/ecaresdocuments/ws/summerschool2009/papers/dener.pdf
Pricing in the Australian Wine Industry Emeral Backfiles 2007
The universality of the signal theory for products and services Journal of Business Research 2001 Vol. 52 pp. 175-187
Price-Quality Relationships of Nundurable Consumer Products: A European
and United States Perspective
Journal of Economic and Social Research 2001 Vol. 3, No. 1 pp. 59-76
Cost economies and economic impacts of pricing and product mix decisions in
premium table wine wineries
Journal of Wine Research 2001 Vol. 12, No. 2 pp. 111-124
Prices as an indicator of Quality: Report on an Enquiry Economica 1966 pp. 43-70
How do consumers use signals do assess quality? American Association of Wine Economics 2007 Working Paper No. 3 pp. 1-22
Do Higher Prices Signal Higher Quality? Journal of Marketing Research1985 Vol. 22, No. 2 pp. 209-215
Do More Expensive Wines Taste Better? Evidence from a Large Sample of
Blind Tastings
American Association of Wine Economics 2008 Working Paper No. 16 pp. 1-14
Horowitz, I.; Lockshin, L.
Hubert, S.; Storchmann, K.
Janssen, M.C.W.; Roy, S.
Jones, G.; Storchmann, K.
Jones, P. and Hudson, J.
Koku, P.S.
Landon, S.; Smith, C.E.
Lecocq, S. and Visser, M.
Lee, L; Frederick, S. and
Ariely, D.
Lima, T.
Lockshin, L.S. and Rhodus,
W.T.
Milgrom, P.; Roberts, J.
Obermiller, C.
Rao, A.R.
Render, B. and O‘Connor, T.S.
Roberts, P.W. and Reagans,
R.
Rosenman, R.E. and Wilson,
W.W.
Rosenthal, R.W.
Rothshild, M.
Schmalensee, R.
Scitovszky, T.
Shapiro, C.
Spence, M.
Spence, M.
Steenkamp, J.-B. E.M.
Stigler, G.J.
Stiglitz, J.E.
Weil, R.L.
Wolinsky, A.
Yehezkel, Y.
Zeithaml, V.A.
Zhao, H.
What Price Quality? An Investigation into the Prediction of Wine-quality Ratings Journal of Wine Research 2002 Vol. 13, No. 1 pp. 7-22
Prices as Quality Signals: Evidence from the Wine Market Journal of Agricultural & Food Industrial Organization 2010 Vol. 8 pp. 1-21
Signalling Quality Through Prices in an Oligopolyhttp://faculty.smu.edu/sroy/quality.pdfhttp://faculty.smu.edu/sroy/quality.pdf
Wine market prices and investment under uncertainty Agricultural Economics 2001 Vol. 26 pp. 115-133
Signalling Product Quality: When is Price Relevant? Journal of Economic Behavior & Organisation 1996 Vol. 30 pp. 257-266
Price signaling: does it ever work? Journal of Consumer Marketing 1995 Vol. 12, No. 1 pp. 45-49
Quality Expectations, Reputation, and Price Southern Economic Journal 1998 Vol. 64, No. 3 pp. 628-647
What Determines Wine Prices: Objective vs. Sensory Characteristics Journal of Wine Economics 2006 Vol. 1, No. 1 pp. 42-56
Try It, You‘ll Like It - The Influence of Expectation, Consumption, and Revelation
on Preferences for Beer
Psychological Science 2006 Vol. 17, No. 12 pp. 1054-1058
Price and Quality in the California Wine Industry: An Emipiral Investigation California State University, Hayward 1999 pp. 1-50
The Effect of Price and Oak Falvor on Percieved Wine Quality Emeral Backfiles 2007 pp. 13-25
Price and Advertising Signals of Product Quality Journal of Political Economy 1986 Vol. 94, No. 4 pp. 796-821
When do Consumers infer in Quality from Price? Advances in Consumer Research 1988 Vol. 15 pp. 304-310
The Quality of Price as a Quality Cue Journal of Marketing Research 2005 Vol. XLII pp. 401-405
The Influence of Price, Store Name, and Brand Name on Perception of Product
Quality
Journal of the Academy of Marketing Science 1976 Vol. 4, No. 4 pp. 722-730
Critical Exposure and Price-Quality Relationships for New World WInes in the
U.S. Market
Journal of Wine Economics 2007 Vol. 2, No. 1 pp. 56-69
Quality Differentials and Prices: Are Cherries Lemons? The Journal of Industrial Economics 1991 Vol. 39, No. 6 pp. 649-658
A Model in which an Increas in the Numer of Sellers LEads to a Higher Price Econometrica 1980 Vol. 48, No. 6 pp. 1575-1579
Searching for the Lowest Price When the Distribution of Prices is Unknown The Journal of Political Economy1974 Vol. 82, No. 4 pp. 689-711
A Model of Advertising and Product Quality The Journal of Political Economy1978 Vol. 86, No. 3 pp. 485-503
Some Consequences of the Habit of Judging Quality by Price The Review of Economic Studies 1945 Vol. 12, No. 2 pp. 100-105
Premiums for High Quality Products as Returns to Reputations The Quarterly Journal of Economics 1983 Vol. 98, No. 4 pp. 659-680
Signaling in Retrospect and the Informational Structure of Markets The American Economic Review2002 Vol. 92, No. 3 pp. 434-459
Job Market Signaling The Quarterly Journal of Economics 1973 Vol. 87, No. 3 pp. 355-374
The Relationship between Price and Quality in the Marketplace De Economist 1988 Vol. 136 pp. 491-507
The Economics of Information The Journal of Political Economy1961 Vol. 69, No. 3 pp. 213-225
The Contributions of the Economics of Information to the Twentieth Century
Economics
The Quarterly Journal of Economics 2000 pp. 1441-1478
Analysis of Reserve and Regular Bottlings: Why Pay for a Difference Only the
Critics Claim to Notice?
Chance 2005 Vol. 18, No. 3 pp. 9-15
Prices as signals of product quality Review of Economic Studies 1983 Vol. 50 pp. 647-658
Signaling Quality in an Oligopoly when some consumers are informed Journal of Economics & Management Strategy 2008 Vol. 17, No. 4 pp. 937-972
Consumer Perceptions of Price, Quality, and Value: A Means-End Model and
Synthesis of Evidence
Journal of Marketing 1988 Vol. 52 pp. 2-22
Raising Awareness and Signaling Quality to Uninformed Consumers: A Price-
Advertising Model
Marketing Science 2000 Vol. 19, No. 4 pp. 390-396
doc_210764625.pdf