I might just be sorta dumb but I don't get it. If consumers know the exact quality of a product, wouldn't companies stock the shelves with products catering towards consumers based on what quality product they would like to purchase? i.e. the people who are fine with low quality would get low quality, and those who are fine with high quality would pay more for high quality. Thus, the company would provide a variety of products, some good some less so, but you would get higher quality products available.
I might just be sorta dumb but I don't get it. If consumers know the exact quality of a product, wouldn't companies stock the shelves with products catering towards consumers based on what quality product they would like to purchase? i.e. the people who are fine with low quality would get low quality, and those who are fine with high quality would pay more for high quality. Thus, the company would provide a variety of products, some good some less so, but you would get higher quality products available.