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Minimum Quality Standard and Protectionism

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Author Info
Bonroy, Olivier

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Abstract

We studied the protectionist character of a minimum quality standard (MQS). We show that in the fixed cost model where two firms, one local and one foreign, compete in a local market, the implementation of a MQS on the local market is a protectionist political only if the local firm supplies the lower quality, whatever the type of competition (Cournot or Bertrand) and the technology differential between the firms.

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File URL: http://www.green.ecn.ulaval.ca/CahiersGREEN2003/03-02.pdf
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Publisher Info
Paper provided by GREEN in its series Cahiers de recherche with number 0302.

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Date of creation: 2003
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Handle: RePEc:lvl:lagrcr:0302

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Related research
Keywords: Minimum Quality Standard; Protectionism; Endogenous Quality;

Find related papers by JEL classification:
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

This paper has been announced in the following NEP Reports:

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.:
  1. Zhou, Dongsheng & Spencer, Barbara J. & Vertinsky, Ilan, 2002. "Strategic trade policy with endogenous choice of quality and asymmetric costs," Journal of International Economics, Elsevier, vol. 56(1), pages 205-232, January. [Downloadable!] (restricted)
    Other versions:
  2. Motta, Massimo, 1993. "Endogenous Quality Choice: Price vs. Quantity Competition," Journal of Industrial Economics, Blackwell Publishing, vol. 41(2), pages 113-31, June. [Downloadable!] (restricted)
  3. L. Lambertini & C. Scarpa, 1999. "Minimum Quality Standards and Predatory Behaviour," Working Papers 353, Dipartimento Scienze Economiche, Universita' di Bologna. [Downloadable!]
  4. David J. Salant, 1986. "Equilibrium in a Spatial Model of Imperfect Competition with Sequential Choice of Locations and Quantities," Canadian Journal of Economics, Canadian Economics Association, vol. 19(4), pages 685-715, November. [Downloadable!] (restricted)
  5. Ecchia, Giulio & Lambertini, Luca, 1997. "Minimum Quality Standards and Collusion," Journal of Industrial Economics, Blackwell Publishing, vol. 45(1), pages 101-13, March. [Downloadable!] (restricted)
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  6. Fischer, Ronald & Serra, Pablo, 2000. "Standards and protection," Journal of International Economics, Elsevier, vol. 52(2), pages 377-400, December. [Downloadable!] (restricted)
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  7. Boom, Anette, 1995. "Asymmetric International Minimum Quality Standards and Vertical Differentiation," Journal of Industrial Economics, Blackwell Publishing, vol. 43(1), pages 101-19, March. [Downloadable!] (restricted)
  8. Tanaka, Yasuhito, 2001. "Profitability of price and quantity strategies in an oligopoly," Journal of Mathematical Economics, Elsevier, vol. 35(3), pages 409-418, June. [Downloadable!] (restricted)
  9. Crampes, C. & Hollander, A., 1992. "Duopoly and Quality Standards," Papers 92.g, Toulouse - GREMAQ.
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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.)

  1. Mario Pezzino, 2006. "Minimum quality standards with more than two firms under Cournot competition," The School of Economics Discussion Paper Series 0613, Economics, The University of Manchester. [Downloadable!]
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