Minimum Quality Standard and Protectionism
AbstractWe 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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Date of creation: 2003
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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; Fragmentation
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-04-13 (All new papers)
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