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Vertical product differentiation and credence goods: Mandatory labeling and gains from international integration

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  • Ian Sheldon
  • Brian Roe

    ()
    (The Ohio State University)

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    Abstract

    A traves de un modelo vertical de diferenciacion de productos se muestra el marco institucional que maximiza el bienestar cuando dos economias se integran comercialmente y coordinan sus politicas de etiquetado y certificacion. En particular, se muestra que el etiquetado discreto, armonizado y obligatorio no maximiza ganancias. Por ejemplo, la eleccion del tipo de etiquetado puede tener un efecto negativo sobre la estructura de mercado si las empresas deciden salirse, reduciendo asi el rango y la calidad de los bienes. Pero con reconocimiento mutuo de estandares de etiquetado existe una probabilidad mas alta de ganancia.

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    File URL: http://econoquantum.cucea.udg.mx/volumen_5_num_1/vol_5_no_1_art_1.pdf
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    Bibliographic Info

    Article provided by Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia. in its journal EconoQuantum, Revista de Economia y Negocios.

    Volume (Year): 5 (2008)
    Issue (Month): 1 (Julio - Diciembre)
    Pages: 9-33

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    Handle: RePEc:qua:journl:v:5:y:2008:i:1:p:9-33

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    Related research

    Keywords: Vertical differentiation; credence goods; labeling; economic Integration.;

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    References

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    1. Brian Roe & Ian Sheldon, 2007. "Credence Good Labeling: The Efficiency and Distributional Implications of Several Policy Approaches," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 1020-1033.
    2. Scarpa, Carlo, 1998. "Minimum quality standards with more than two firms1," International Journal of Industrial Organization, Elsevier, vol. 16(5), pages 665-676, September.
    3. Boom, Anette, 1995. "Asymmetric International Minimum Quality Standards and Vertical Differentiation," Journal of Industrial Economics, Wiley Blackwell, vol. 43(1), pages 101-19, March.
    4. Lutz, Stefan, 1996. "Trade Effects of Minimum Quality Standards with and without Deterred Entry," CEPR Discussion Papers 1384, C.E.P.R. Discussion Papers.
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