The article explores how the price of a product can be influenced by its quality and consumers' reference prices. By using a model that considers how firms adjust prices and quality over time based on past prices, the researchers found that higher quality can sometimes lead to lower prices, especially when consumers have a set reference price in mind. This unexpected negative relationship between price and quality can occur even with a simple demand function. The study emphasizes the importance of initial market conditions in shaping this price-quality dynamic.