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On MQS regulation, innovation and market coverage

  • E. Bacchiega
  • L. Lambertini
  • A. Mantovani

We revisit Maxwell's (1998) analysis to show that his results are incompatible with the assumption of full market coverage. As a consequence, the effects of MQS regulation on the high-quality firm's incentive to adopt a more efficient technology cannot be assessed in this model.

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Paper provided by Dipartimento Scienze Economiche, Universita' di Bologna in its series Working Papers with number 575.

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Date of creation: Nov 2006
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Handle: RePEc:bol:bodewp:575
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  1. Garella, Paolo G., 2006. ""Innocuous" minimum quality standards," Economics Letters, Elsevier, vol. 92(3), pages 368-374, September.
  2. Crampes, Claude & Hollander, Abraham, 1995. "Duopoly and quality standards," European Economic Review, Elsevier, vol. 39(1), pages 71-82, January.
  3. Uri Ronnen, 1991. "Minimum Quality Standards, Fixed Costs, and Competition," RAND Journal of Economics, The RAND Corporation, vol. 22(4), pages 490-504, Winter.
  4. Ecchia, Giulio & Lambertini, Luca, 1997. "Minimum Quality Standards and Collusion," Journal of Industrial Economics, Wiley Blackwell, vol. 45(1), pages 101-13, March.
  5. GABSZEWICZ, Jean J. & THISSE, Jacques-François, . "Price competition, quality and income disparities," CORE Discussion Papers RP -370, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. Maxwell, John W., 1998. "Minimum quality standards as a barrier to innovation," Economics Letters, Elsevier, vol. 58(3), pages 355-360, March.
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