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Overcompliance with minimum quality standards

Author

Listed:
  • Lander Beloqui

    (Mondragon Unibertsitatea)

  • Jose M. Usategui

    (Universidad del País Vasco/EHU)

Abstract

This paper presents an unnoticed result that may occur when an effective minimum quality standard is imposed in a duopoly model where firms decide on quality and prices in two stages and where both covered or uncovered markets may be endogenous outcomes of the competition game. We derive situations, associated to transitions induced by the standard from uncovered market to covered market, where the two firms decide to provide a quality level higher than the minimum quality required by the standard (Copyright: Fundación SEPI)

Suggested Citation

  • Lander Beloqui & Jose M. Usategui, 2004. "Overcompliance with minimum quality standards," Investigaciones Economicas, Fundación SEPI, vol. 28(2), pages 233-255, May.
    • Handle: RePEc:iec:inveco:v:28:y:2004:i:2:p:233-255
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Overcompliance; quality standards; market coverage; quality competition;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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