Quality Premiums and the Competitive Firm's Production Decision
AbstractThe impact of price-quality schedule changes on the 'optimal input choice' of producers which subscribe to a minimum quality standard is investigated using the stochastic dominance method. In addition, the effects of a transition from a fixed price schedule to a quality-dependent price schedule are examined. The correlations between production technology, a minimum quality standard and price levels needed to ensure that total and marketed output remains the same are also discussed.
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Bibliographic InfoPaper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 5262.
Date of creation: 01 Jul 1995
Date of revision:
Publication status: Published in Southern Economic Journal, July 1995, vol. 62, pp. 107-115
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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
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Web page: http://www.econ.iastate.edu
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