Competition Vs. Quality In An Industry With Imperfect Traceability
We consider an industry where firms produce goods that have different quality levels but firms cannot differentiate themselves from rivals. In this situation, producing low-quality generates a negative externality on the whole industry. This is particularly true when consumers cannot identify producers. In this article, we show that under a "Laissez Faire" situation free entry is not socially optimal and we argue that the imposition of a Minimum Quality Standard (MQS) may induce firms to enter the market.
(This abstract was borrowed from another version of this item.)
|Date of creation:||2010|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.eaae.org|
More information through EDIRC
More information through EDIRC
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.:
- Paolo Garella & Emmanuel Petrakis, 2005.
"Minimum Quality Standards and Consumers Information,"
0510, University of Crete, Department of Economics.
- Paolo Garella & Emmanuel Petrakis, 2008. "Minimum quality standards and consumers’ information," Economic Theory, Springer, vol. 36(2), pages 283-302, August.
- P. Garella & P. Petrakis, 2004. "Minimum Quality Standards and ConsumersÕ Information," Working Papers 532, Dipartimento Scienze Economiche, Universita' di Bologna.
- Paolo G. GARELLA & Emmanuel PETRAKIS, 2007. "Minimum quality standards and consumers’ information," Departmental Working Papers 2007-12, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
- Crampes, C. & Hollander, A., 1991.
"Duopoly and Quality Standards,"
Cahiers de recherche
9128, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Nicolas Boccard & Xavier Wauthy, 2005.
"Enforcing Domestic Quality Dominance through Quotas,"
Review of International Economics,
Wiley Blackwell, vol. 13(2), pages 250-261, 05.
- BOCCARD, Nicolas & WAUTHY, Xavier, . "Enforcing domestic quality dominance through quotas," CORE Discussion Papers RP -1756, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- A. Michael Spence, 1975. "Monopoly, Quality, and Regulation," Bell Journal of Economics, The RAND Corporation, vol. 6(2), pages 417-429, Autumn.
- Leland, Hayne E, 1979. "Quacks, Lemons, and Licensing: A Theory of Minimum Quality Standards," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1328-46, December.
- Elodie Rouviere & Raphael Soubeyran & Céline Bignebat, 2010.
"Heterogeneous efforts in voluntary programmes on food safety,"
European Review of Agricultural Economics,
Foundation for the European Review of Agricultural Economics, vol. 37(4), pages 479-499, December.
- Elodie Rouviere & Raphael Soubeyran & Celine Bignebat, 2010. "Heterogeneous efforts in voluntary programmes on food safety," Working Papers 40031, Institut National de la Recherche Agronomique, France.
- Jason A. Winfree & Jill J. McCluskey, 2005.
"Collective Reputation and Quality,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 87(1), pages 206-213.
- Calvin, Linda, 2007. "Outbreak Linked to Spinach Forces Reassessment of Food Safety Practices," Amber Waves, United States Department of Agriculture, Economic Research Service, June.
- Scarpa, Carlo, 1998. "Minimum quality standards with more than two firms1," International Journal of Industrial Organization, Elsevier, vol. 16(5), pages 665-676, September.
- Valletti, Tommaso M, 2000. "Minimum Quality Standards under Cournot Competition," Journal of Regulatory Economics, Springer, vol. 18(3), pages 235-45, November.
When requesting a correction, please mention this item's handle: RePEc:ags:eaa115:116407. 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: (AgEcon Search)
If references are entirely missing, you can add them using this form.