Quality Certification Standards in Competitive Markets: When Consumers and Producers (Dis)Agree
AbstractA 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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Bibliographic InfoPaper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 13048.
Date of creation: 12 Mar 2009
Date of revision:
Publication status: Published in Economics Letters, September 2009, vol. 104 no. 3, pp. 144-147
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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
More information through EDIRC
Comparative statics; log-concavity; minimum quality standards; quality certification; vertical product differentiation;
Other versions of this item:
- Lapan, Harvey & Moschini, GianCarlo, 2009. "Quality certification standards in competitive markets: When consumers and producers (dis)agree," Economics Letters, Elsevier, vol. 104(3), pages 144-147, September.
- D40 - Microeconomics - - Market Structure and Pricing - - - General
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