Understanding the hidden bias behind pricing and quality trade-offs
What happens when managers make self-serving decisions about price and quality?
In this video, Oded Koenigsberg, Professor of Marketing at London Business School, explains his research into how firms approach the trade-off between price and quality. Many managers attribute successes to their chosen strategy—whether price leadership or quality leadership—while blaming failures on the other factor. These biased attributions can lead to distorted decisions, such as over-investing in quality while ignoring pricing.
Oded’s research combines empirical evidence and analytical models to quantify these biases, explore their impact on profits, and identify conditions where incentives or even competitors can counteract the effects.
What happens when managers make self-serving decisions about price and quality?
In this video, Oded Koenigsberg, Professor of Marketing at London Business School, explains his research into how firms approach the trade-off between price and quality. Many managers attribute successes to their chosen strategy—whether price leadership or quality leadership—while blaming failures on the other factor. These biased attributions can lead to distorted decisions, such as over-investing in quality while ignoring pricing.
Oded’s research combines empirical evidence and analytical models to quantify these biases, explore their impact on profits, and identify conditions where incentives or even competitors can counteract the effects.