Use the following table for question
-Given that the firm offers both the products,what prices can it offer to motivate the two groups to profitably self-sort into buying the correct brand
A)No-name $60;High-end $100
B)No-name $50;High-end $100
C)No-name $50;High-end $90
D)No-name $60;High-end $90

Question

​Use the following table for question
-Given that the firm offers both the products,what prices can it offer to motivate the two groups to profitably self-sort into buying the correct brand​
A)​No-name $60;High-end $100 
B)No-name $50;High-end $100 
C)No-name $50;High-end $90 
D)​No-name $60;High-end $90

Quizplus · Accepted Answer

To motivate self-sorting, the price differential needs to be significant enough. Offering the no-name product at a lower price of $50 makes it an attractive option for budget-conscious consumers, while offering the high-end product at a slightly lower price of $90 still makes it an attractive option for those willing to pay more for quality. This price difference should effectively motivate self-sorting.

​Use the Following Table for

Use the Following Table for