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Séminaire Fondation HEC Montréal

Cheating or delighting customers on product quality?

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10 mai 2018   11h00 — 12h00

Fouad El Ouardighi ESSEC Business School, France

In this paper, we claim that, though based on different tradeoffs, cheating and delighting policies are the two faces of the same coin. Cheating relies on inflated goodwill and provides a cheating rent as long as the cheating is not disclosed, while delighting benefits from enhanced goodwill and yields a delighting rent as soon as the delighting is awarded. The conditions that allow for rent equalization between the two policy options are identified. We also characterize the conditions under which either cheating or delighting customers on quality is beneficial.


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Georges Zaccour responsable

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Salle 4488
Pavillon André-Aisenstadt
Campus de l'Université de Montréal
2920, chemin de la Tour Montréal QC H3T 1J4 Canada

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