Information and the Provision of Quality Differentiated Products
Information and the Provision of Quality Differentiated Products
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信息和优质差异化产品的提供
DOI:
10.1111/j.1465-7295.2006.00033.x
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发表时间:
2006
期刊:
影响因子:
--
通讯作者:
M. Khanna
中科院分区:
文献类型:
--
作者:
Keith Brouhle;M. Khanna
Governments often enact information provision policies to overcome asymmetric information of product qualities. We show that increasing awareness among consumers of the quality of a good can (but will not always) encourage firms to produce goods with higher levels of quality. Even if product qualities increase, social welfare may fall as information provision results in too much product differentiation. We show that the effectiveness of emission taxes and output subsidies are affected by the level of consumer knowledge of product quality, and we identify conditions under which information provision is welfare enhancing relative to these price instruments. (JEL L1 5, Q58)