Qualitative Information, Reputation, and Monopolistic Competition
NBER Working Paper No. 95
Much recent research in the economics of information has analyzed the implications of alternative market structures in the presence of qualitative characteristics which cannot be accurately and objectively measured or described. This approach avoids the more basic question of the influence of qualitative information on the emergence of market structures. This paper argues that market structures arise which minimize total average production and information costs and that qualitative characteristics produce structures utilizing reputation.
Published: International Review of Law and Economics, vol.9, no.1, pp87-103, June 1989