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Author:Shy, O.
Title:Exporting as a signal for product quality
Journal:Economica
2000 : FEB, VOL. 67:265, p. 79-90
Index terms:PRODUCT QUALITY
EXPORTING
ECONOMICS
Language:eng
Abstract:The author develops a dynamic asymmetric information model where a domestic producer is unable to commit to producing a high-quality product. The domestic producer then can signal to consumers that it is producing a high-quality product by developing the infrastructure needed to start exporting the product. This signalling may take place even if selling internationally is less profitable than selling high quality only at home in that absence of credibility problems.
SCIMA record nr: 213007
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