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Collective Reputation, Entry and Minimum Quality Standard

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Author Info
Raphaël Soubeyran (INRA-MOISA)
Elodie Rouvière (INRA-MOISA)

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Abstract

This article deals with the issue of entry into an industry where firms share a collective reputation. First, we show that free entry is not socially optimal; there is a need for regulation through the imposition of a minimum quality standard. Second, we argue that a minimum quality standard can induce firms to enter the market. Contrary to conventional wisdom, a minimum quality standard should not always be considered as a barrier to entry.

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Publisher Info
Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2008.7.

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Date of creation: Jan 2008
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Handle: RePEc:fem:femwpa:2008.7

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Related research
Keywords: Collective Reputation; Entry; Minimum Quality Standard;

Find related papers by JEL classification:
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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This page was last updated on 2009-12-3.

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