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Author:Wolinsky, A.
Title:Brand names and price discrimination.
Journal:Journal of Industrial Economics
1987 : MAR, VOL. 35:3, p. 255-268
Index terms:PRICES
BRAND NAMES
EQUILIBRIUM ANALYSIS
BRAND LOYALTY
MARKET RESEARCH
Language:eng
Abstract:The fact that firms market both labeled and unlabeled products as a practice of price discrimination that emerges as a noncooperative equilibrium outcome is explained. A market for a differentiated product is considered where the possibility to price discrimination by the selective use of labels is due to the fact that buyers differ in the intensity of their preferences and that, before they buy,they are unable to distinguish among the different brands without the aid of identifying labels. The welfare consequences of the special form of price discrimination are also discussed.
SCIMA record nr: 52146
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