Some firms sell the same product under two brand names at different prices. For example, although the

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Some firms sell the same product under two brand names at different prices. For example, although the Chevy Tahoe and the GMC Yukon are virtually twins, the 2016 Yukon sells for $1,200 more than the 2016 Tahoe. Give an asymmetric information explanation as to why the firm might use pairs of brand names and why one product might sell for more than does another.

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Microeconomics

ISBN: 978-0134519531

8th edition

Authors: Jeffrey M. Perloff

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