"Innocuous" Minimum Quality Standards

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"Innocuous" Minimum Quality Standards

Author Info

Paolo Garella () (Dipartimento di Scienze Economiche, University of Bologna, Italy)

Additional information is available for the following registered author(s):

Paolo Giorgio Garella

Abstract

The present note shows that "innocuous" Minimum Quality Standards, namely below the lowest quality in a market, may have effects on equilibrium outcomes. Such a MQS reduces the incentive to invest in R&D by the quality-leading firm.

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Publisher Info
Paper provided by University of Crete, Department of Economics in its series Working Papers with number 0606.

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Length: 7 pages
Date of creation: 06 Mar 2006
Date of revision:
Handle: RePEc:crt:wpaper:0606

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Article
- Garella, Paolo G., 2006. ""Innocuous" minimum quality standards," Economics Letters, Elsevier, vol. 92(3), pages 368-374, September. [Downloadable!] (restricted)

Find related papers by JEL classification:
L0 - Industrial Organization - - General
L5 - Industrial Organization - - Regulation and Industrial Policy

This paper has been announced in the following NEP Reports:

NEP-ALL-2006-10-07 (All new papers)
NEP-COM-2006-10-07 (Industrial Competition)
NEP-INO-2006-10-07 (Innovation)
NEP-MIC-2006-10-07 (Microeconomics)

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Becker, Gary S & Murphy, Kevin M, 1993. "A Simple Theory of Advertising as a Good or Bad," The Quarterly Journal of Economics, MIT Press, vol. 108(4), pages 941-64, November. [Downloadable!] (restricted)
Choi, Chong Ju & Shin, Hyun Song, 1992. "A Comment on a Model of Vertical Product Differentiation," Journal of Industrial Economics, Blackwell Publishing, vol. 40(2), pages 229-31, June. [Downloadable!] (restricted)
Scarpa, Carlo, 1998. "Minimum quality standards with more than two firms1," International Journal of Industrial Organization, Elsevier, vol. 16(5), pages 665-676, September. [Downloadable!] (restricted)
Lutz, Stefan & Lyon, Thomas P & Maxwell, John W, 2000. "Quality Leadership When Regulatory Standards Are Forthcoming," Journal of Industrial Economics, Blackwell Publishing, vol. 48(3), pages 331-48, September. [Downloadable!] (restricted)
Crampes, Claude & Hollander, Abraham, 1995. "Duopoly and quality standards," European Economic Review, Elsevier, vol. 39(1), pages 71-82, January. [Downloadable!] (restricted)
Other versions:
- Crampes, C. & Hollander, A., 1991. "Duopoly and Quality Standards," Cahiers de recherche 9128, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Crampes, C. & Hollander, A., 1991. "Duopoly and Quality Standards," Cahiers de recherche 9128, Universite de Montreal, Departement de sciences economiques.
- Crampes, C. & Hollander, A., 1992. "Duopoly and Quality Standards," Papers 92.g, Toulouse - GREMAQ.
Shaked, Avner & Sutton, John, 1982. "Relaxing Price Competition through Product Differentiation," Review of Economic Studies, Blackwell Publishing, vol. 49(1), pages 3-13, January. [Downloadable!] (restricted)
Maxwell, John W., 1998. "Minimum quality standards as a barrier to innovation," Economics Letters, Elsevier, vol. 58(3), pages 355-360, March. [Downloadable!] (restricted)

Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Marette, Stéphan, 2007. "Minimum Safety Standard, Consumers’ Information, and Competition (The)," Staff General Research Papers 12718, Iowa State University, Department of Economics. [Downloadable!]
Other versions:
- Stephan Marette, 2007. "Minimum Safety Standard, Consumers' Information, and Competition, The," Center for Agricultural and Rural Development (CARD) Publications 07-wp441, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
- Stephan Marette, 2007. "Minimum Safety Standard, Consumers' Information, and Competition, The," Food and Agricultural Policy Research Institute (FAPRI) Publications 07-wp441, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University. [Downloadable!]
E. Bacchiega & L. Lambertini & A. Mantovani, 2006. "On MQS regulation, innovation and market coverage," Working Papers 575, Dipartimento Scienze Economiche, Università di Bologna. [Downloadable!]

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