Non-Price Effects

[rlande@UBmail.ubalt.edu]

I am doing some research in the area of non-price competition.  I am
interested in cases where a monopoly or cartel might find it more
advantageous to lower product quality or restrict product variety
than to raise price.

(One case that might fit this involved a macaroni cartel that decided to
lower quality rather than raise price.  I do not recall why - perhaps
the lowered quality was less visible and therefore less detectable, or
perhaps it was less likely to lead to significantly lower sales than would
higher macaroni prices.)

Does anyone know of any other cases where this has happened, or any
economic literature indicating when this type of behavior might
occur?

Thank you,
Bob Lande