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Minimum Quality Standards under Asymmetric Duopoly with Endogenous Quality Ordering: A Note

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  • Naoto Jinji

    ()

  • Tsuyoshi Toshimitsu

    ()

Abstract

In this note, we revisit minimum quality standards (MQS) under a vertically differentiated duopoly. We generalize the model in Ronnen (1991) and Valletti (2000) by introducing asymmetry into the fixed cost of quality improvement and by explicitly taking into account the endogeneity of quality ordering. In the generalized model, we show that the results derived by Ronnen (1991) and Valletti (2000) are largely robust.

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Bibliographic Info

Article provided by Springer in its journal Journal of Regulatory Economics.

Volume (Year): 26 (2004)
Issue (Month): 2 (09)
Pages: 189-199

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Handle: RePEc:kap:regeco:v:26:y:2004:i:2:p:189-199

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Web page: http://www.springerlink.com/link.asp?id=100298

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Cited by:
  1. Dimitra Petropoulou, 2008. "International trade, minimum quality standards and the prisoners' dilemma," LSE Research Online Documents on Economics 19626, London School of Economics and Political Science, LSE Library.
  2. S Lutz, 2005. "Regulatory Standards Can Lead to Predation," The School of Economics Discussion Paper Series 0509, Economics, The University of Manchester.
  3. Radoslav S. Raykov, 2014. "Uncertain Costs and Vertical Differentiation in an Insurance Duopoly," Working Papers 14-14, Bank of Canada.
  4. Olivier Bonroy & Christos Constantatos, 2008. "Minimum Quality Standards and Equilibrium Selection with Asymmetric Firms," Discussion Paper Series 2008_13, Department of Economics, University of Macedonia, revised Oct 2008.
  5. Paolo Garella & Emmanuel Petrakis, 2005. "Minimum Quality Standards and Consumers Information," Working Papers 0510, University of Crete, Department of Economics.
  6. Stefan Napel & Gunnar Oldehaver, 2009. "A Dynamic Perspective on Minimum Quality Standards under Cournot Competition," Working Papers 082, Bavarian Graduate Program in Economics (BGPE).
  7. Garella, Paolo G. & Lambertini, Luca, 2014. "Bidimensional vertical differentiation," International Journal of Industrial Organization, Elsevier, vol. 32(C), pages 1-10.
  8. Mina Baliamoune & Stefan Lutz, 2009. "Preemption, Predation, and Minimum Quality Standards," ICER Working Papers 20-2009, ICER - International Centre for Economic Research.
  9. Dimitra Petropoulou, 2013. "Vertical product differentiation, minimum quality standards, and international trade," Oxford Economic Papers, Oxford University Press, vol. 65(2), pages 372-393, April.
  10. Dimitra Petropoulou, 2008. "International Trade, Minimum Quality Standards and the Prisoners' Dilemma," CEP Discussion Papers dp0858, Centre for Economic Performance, LSE.
  11. Haizhen Lin, 2010. "Do Minimum Quality Standards Improve Quality? A Case Study of the Nursing Home Industry," Working Papers 2010-01, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.

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