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Endogenous Timing and Quality Standards in a Vertically Differentiated Duopoly


  • Giulio ECCHIA

    (Faculty of Law, University of Foggia, Italie)


    (Department of Economics, University of Bologna, Italie)


The consequences of the adoption of quality standards on the endogenous timing of moves are investigated in a vertically differentiated duopoly. We obtain two main results. First, we prove that, when the low-quality firm is Stackelberg leader in the quality stage, the related MQS is ineffective. Second, the timing game in the quality space has a unique equilibrium in pure strategies, involving simultaneous moves. The related optimal MQS is time consistent, although suboptimal from the viewpoint of the regulator.

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  • Giulio ECCHIA & Luca LAMBERTINI, 2001. "Endogenous Timing and Quality Standards in a Vertically Differentiated Duopoly," Discussion Papers (REL - Recherches Economiques de Louvain) 2001021, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  • Handle: RePEc:ctl:louvre:2001021

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    References listed on IDEAS

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    Cited by:

    1. Eric Giraud-Héraud & Lamia Rouached & Louis-Georges Soler, 2003. "Minimum Quality Standard and Premium Private Labels," Working Papers hal-00242955, HAL.
    2. Éric Giraud-Héraud & Lamia Rouached & Louis-Georges Soler, 2006. "Private labels and public quality standards: How can consumer trust be restored after the mad cow crisis?," Quantitative Marketing and Economics (QME), Springer, vol. 4(1), pages 31-55, March.
    3. Codron, Jean-Marie & Giraud-Heraud, Eric & Soler, Louis-Georges, 2005. "Minimum quality standards, premium private labels, and European meat and fresh produce retailing," Food Policy, Elsevier, vol. 30(3), pages 270-283, June.

    More about this item


    Minimum Quality Standard; extended game; endogenous timing;

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets


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