Market Structure, Quality and Durability
This paper analyzes the effects of market structure -- monopoly versus competition -- on the quality and durability of goods. Also, it tries to find the impact of government regulation on these variables. The types of quality improvements discussed are: quality as pure substitute for quantity; quality which increases the demand for the good; and quality improvement which increases the durability of the good. In general, it is impossible to deduce that quality is independent of market structure. It depends on the cost structure. The paper shows that when quality is a substitute for quantity, both quality and quantity of the monopoly might fall short of those in the competitive market. Regulating only quality, or only quantity, may increase the monopoly misallocations of resources. In other types of quality improvements discussed, it may turn out that quality and durability may be better or worse in the monopolized industry than in the competitive one. Regulating only quality may improve the resource allocation but not eliminate the bias. Quantity regulation by itself may be sufficient for producing the optimal flow of services.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 4 (1973)
Issue (Month): 1 (Spring)
|Contact details of provider:|| Web page: http://www.rje.org|
|Order Information:||Web: https://editorialexpress.com/cgi-bin/rje_online.cgi|
When requesting a correction, please mention this item's handle: RePEc:rje:bellje:v:4:y:1973:i:spring:p:235-248. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.