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• This paper analyses the effects of a change in distribution of income on quality choice made by firms producing search goods
• t is assumed that willingness to pay for quality of consumers is an increasing function of income
• anyredistribution of income will induce firms to improve their quality levels in duopoly andmonopoly markets if redistribution makes consumers equally or unequally better of
• Beyond some level, such an increase is no longer profitable to low-quality producer as consumers will become rich enough to purchase the high quality good.

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