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@book{ Friedrichsen2013, title = {Image concerns and the provision of quality}, author = {Friedrichsen, Jana}, year = {2013}, series = {Discussion Papers / Wissenschaftszentrum Berlin für Sozialforschung, Forschungsschwerpunkt Markt und Entscheidung, Abteilung Verhalten auf Märkten}, pages = {86}, volume = {SP II 2013-211}, address = {Berlin}, publisher = {Wissenschaftszentrum Berlin für Sozialforschung gGmbH}, abstract = {In this paper, I study markets where consumers are heterogeneous with respect to both their concerns for the quality of goods and the image associated with them. Consumers with a taste for quality lend a positive image to the product of their choice and thereby increase the product's value to others. A monopolist restricts the product portfolio and charges price premia to allocate image along with quality. Heterogeneity in image concerns thereby provides a rationale for pooling consumers with differing quality preferences. Although image is correlated with a product's quality in equilibrium, an increase in the value of image may decrease quality provision. In a competitive market, premium prices are unsustainable so that image-concerned consumers buy excessive quality instead. Monopoly may therefore yield higher welfare than competition. Policy options to remedy the efficiency losses are discussed. (author's abstract)}, keywords = {Motivation; motivation; Konsum; consumption; Ethik; ethics; Image; image; Qualität; quality; Ware; commodity; Markt; market; Verbraucher; consumer; Bild; picture; Produkt; product; Preispolitik; pricing policy; Kaufverhalten; buying behavior}}