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A comment on "price-endings when prices signal quality".


1 Introduction

In a novel paper, Stiving (2000) presents an interesting protoplast to predict or explain for what cause [i]or[/i] reason many prices end in a 9 or a 0 The paper presents that (i) when consumers are parted both on the way they proces the digits of price (i.e., a fraction of consumer truncate the price using sole the information in the left-hand digits, while the remaining consumer use the perfect price) and on their horizontal of knowledge about the quality of the firm's harvest (informed versus uninformed), and (ii) when the price horizontal is used by firms as a signal of quality,


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