A quality certification standard in a competitive setting can improve welfare but may affect consumers and producers differently. In a competitive model with quality preferences of the vertical product differentiation type, we find that producers prefer a higher (lower) quality standard than consumers if individual demand functions are log-convex (log-concave).
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Publisher Info
Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number
13048.
Length: Date of creation: 12 Mar 2009 Date of revision: Publication status: Forthcoming in Economics Letters Handle: RePEc:isu:genres:13048
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