IDEAS home Printed from https://ideas.repec.org/a/spr/jecstr/v2y2013i1p1-1810.1186-2193-2409-2-6.html
   My bibliography  Save this article

Quality Adjustment in Non-spanning Markets with Variety Aversion

Author

Listed:
  • Kazuhiko Nishimura

Abstract

This paper examines the dynamic process of quality adjustment in cases where the economy lacks a sufficient number of markets for coordinating the level of attributes that configure the qualities of products. It shows that an adjustment process through the development and selection of commodities with different qualities may succeed in achieving efficiency or at least, meet the necessary conditions for efficiency. This is true if the user can identify with the altered product and is unaffected by variety in the commodity. It also holds true when the consumer assesses product variety in a smooth (differentiable) function, but not necessarily so if the assessment is non-smooth regarding the homogeneous state. An unidentifiable case can also be subject to inefficiency as the effort of a small quality adjusting agent becomes attenuated. JEL Classification: L15, H23, O33. Copyright K. Nishimura; licensee Springer 2013

Suggested Citation

  • Kazuhiko Nishimura, 2013. "Quality Adjustment in Non-spanning Markets with Variety Aversion," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 2(1), pages 1-18, December.
    • Handle: RePEc:spr:jecstr:v:2:y:2013:i:1:p:1-18:10.1186/2193-2409-2-6
    DOI: 10.1186/2193-2409-2-6
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1186/2193-2409-2-6
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1186/2193-2409-2-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kimitoshi Sato, 2012. "Nonmyopia and incentives in the piecewise linearized MDP procedures with variable step-sizes," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 1(1), pages 1-23, December.
    2. Kaiser Karen, 2011. "Variety Aversion and Information Overload: An Experimental Approach," Working Papers 2011-01, Banco de México.
    3. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    4. Eiji Hosoda, 2012. "Recycling of waste and downgrading of secondary resources in a classical type of production model," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 1(1), pages 1-22, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ward, Clement E. & Lusk, Jayson L. & Dutton, Jennifer M., 2008. "Implicit Value of Retail Beef Product Attributes," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(3), pages 1-18.
    2. Reynolds, Travis & Kolodinsky, Jane & Murray, Byron, 2012. "Consumer preferences and willingness to pay for compact fluorescent lighting: Policy implications for energy efficiency promotion in Saint Lucia," Energy Policy, Elsevier, vol. 41(C), pages 712-722.
    3. Abdullah, Sabah & Mariel, Petr, 2010. "Choice experiment study on the willingness to pay to improve electricity services," Energy Policy, Elsevier, vol. 38(8), pages 4570-4581, August.
    4. Czajkowski, Mikołaj & Zagórska, Katarzyna & Letki, Natalia & Tryjanowski, Piotr & Wąs, Adam, 2021. "Drivers of farmers’ willingness to adopt extensive farming practices in a globally important bird area," Land Use Policy, Elsevier, vol. 107(C).
    5. Canessa, Carolin & Venus, Terese E. & Wiesmeier, Miriam & Mennig, Philipp & Sauer, Johannes, 2023. "Incentives, Rewards or Both in Payments for Ecosystem Services: Drawing a Link Between Farmers' Preferences and Biodiversity Levels," Ecological Economics, Elsevier, vol. 213(C).
    6. Rebecca Boehm & Hannah Kitchel & Selena Ahmed & Anaya Hall & Colin M. Orians & John Richard Stepp & Al Robbat, Jr. & Timothy S. Griffin & Sean B. Cash, 2019. "Is Agricultural Emissions Mitigation on the Menu for Tea Drinkers?," Sustainability, MDPI, vol. 11(18), pages 1-20, September.
    7. Huang, Chung L. & Lin, Biing-Hwan, 2006. "A Hedonic Analysis on the Implicit Values of Fresh Tomatoes," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25404, International Association of Agricultural Economists.
    8. Hyowon Kim & Dong Soo Kim & Greg M. Allenby, 2020. "Benefit Formation and Enhancement," Quantitative Marketing and Economics (QME), Springer, vol. 18(4), pages 419-468, December.
    9. Hussain, Salman, 2006. "Co-regulation and voluntarism in the provision of food safety: lessons from institutional economics," Working Papers 45996, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    10. Anderson, Simon P. & Foros, Øystein & Kind, Hans Jarle, 2012. "Product quality, competition, and multi-purchasing," Discussion Papers 2012/9, Norwegian School of Economics, Department of Business and Management Science.
    11. Ma, Yongfan & Qi, Tiancheng, 2023. "China mainland art investment: Return and portfolio," Finance Research Letters, Elsevier, vol. 58(PC).
    12. Min, Shi & Wang, Xiaobing & Yu, Xiaohua, 2021. "Does dietary knowledge affect household food waste in the developing economy of China?," Food Policy, Elsevier, vol. 98(C).
    13. Mika Kortelainen & Timo Kuosmanen, 2007. "Eco-efficiency analysis of consumer durables using absolute shadow prices," Journal of Productivity Analysis, Springer, vol. 28(1), pages 57-69, October.
    14. Barnett, William A. & Serletis, Apostolos, 2008. "Consumer preferences and demand systems," Journal of Econometrics, Elsevier, vol. 147(2), pages 210-224, December.
    15. Mtimet, Nadhem & Ujiie, Kiyokazu & Kashiwagi, Kenichi & Zaibet, Lokman & Nagaki, Masakazu, 2011. "The effects of Information and Country of Origin on Japanese Olive Oil Consumer Selection," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114642, European Association of Agricultural Economists.
    16. Greene, David & Hossain, Anushah & Hofmann, Julia & Helfand, Gloria & Beach, Robert, 2018. "Consumer willingness to pay for vehicle attributes: What do we Know?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 258-279.
    17. Jitender Singh, 2016. "Quality of Public Goods, Public Policy and Human Development: A State-wise Analysis," Indian Journal of Human Development, , vol. 10(2), pages 215-235, August.
    18. Charles Hulten & Leonard I. Nakamura, 2020. "Expanded GDP for Welfare Measurement in the 21st Century," NBER Chapters, in: Measuring and Accounting for Innovation in the Twenty-First Century, pages 19-59, National Bureau of Economic Research, Inc.
    19. Choi, Andy S., 2013. "Nonmarket values of major resources in the Korean DMZ areas: A test of distance decay," Ecological Economics, Elsevier, vol. 88(C), pages 97-107.
    20. Doherty, Edel & Campbell, Danny, 2011. "Demand for improved food safety and quality: a cross-regional comparison," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108791, Agricultural Economics Society.

    More about this item

    Keywords

    Quality adjustment; Adaptive selection; Trial and error; Variety averse; Non-spanning markets;
    All these keywords.

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jecstr:v:2:y:2013:i:1:p:1-18:10.1186/2193-2409-2-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.