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So i guess some of the reasons are:

1. Inability for the buyer to assess quality:

  1.1 Lack of buyers' expertise (tfa goes into this a lot)

  1.2 Long timescale to assess quality:
that is, a lot of types of 'poor quality' aren't apparent until long after the sale; so even if you polled every buyer once a week, if sales were growing, the unhappy poll results due to poor quality would be overshadowed by the happy poll results from new buyers

  1.3 Dishonest reviews:
even if buyers are able to assess quality after the fact, it's hard for old buyers to communicate this to potential buyers due to honest reviews being buried in dishonest reviews

2. Peter principal (experts are promoted, so at any one time most of the people doing a job haven't achieved mastery):

This is especially a problem for services, where someone who has achieved mastery at providing the service can make more money by becoming a manager. For example, in business consulting or in construction, often there is a person with a lot of experience at the top but the people actually doing the work don't have a lot of experience.

3. Market won't pay for quality:

Even if buyers can tell that one product/service is of higher quality than another, often they would choose the cheaper one over the high quality one, either because the product/service at issue just isn't that important to them relative to the money they could save, or because they have a hard budgetary constraint and they are forced to compromise somewhere.

4. Cultural factors: Some people report that, for example, quality in the U.S. seems to tend to be worse than quality in Germany or Japan. If this is real, i don't know what it is specifically about US/German/Japanese culture (or workplace culture/structure) that causes this.



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