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If notorious firm behavior defrauding a buyer of high-priced experience goods by delivering low quality becomes known throughout the marketplace only with a lag of three periods profits


If notorious firm behavior (i.e., defrauding a buyer of high-priced experience goods by delivering low quality) becomes known throughout the marketplace only with a lag of three periods, profits on high-quality transactions remain the same, and interest rates rise slightly, are customers more likely or less likely to agree to pay high prices for an experience good? Explain.

Mar 30 2020 View more View Less

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