Certification of Origin as a Non-Tariff Barrier
This paper put forward the opinion that the certification of origin constitutes another type ofnon-tariff barrier. Indeed, certification of origin often combines both a quantity restriction anda sort of quality cost subsidy. We consider the canonical model of strategic trade policy,whereby two firms are located respectively in the home country and in a foreign country andare competing on the domestic market. In this framework, we show how certification canallow the domestic firm to position itself as a high quality producer. If, however, the certifiedfirm offers the low quality good, then consumers' surplus may be improved.
|Date of creation:||2004|
|Note:||View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00242917|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
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.:
- Krishna, Kala, 1990.
"Protection and the Product Line: Monopoly and Product Quality,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(1), pages 87-102, February.
- Kala Krishna, 1985. "Protection and the Product Line: Monopoly and Product Quality," NBER Working Papers 1537, National Bureau of Economic Research, Inc.
- Motta, Massimo, 1993. "Endogenous Quality Choice: Price vs. Quantity Competition," Journal of Industrial Economics, Wiley Blackwell, vol. 41(2), pages 113-131, June.
- Analysis, A Welfare & Das, Satya P. & Donnenfeld, Shabtai, 1987. "Trade policy and its impact on quality of imports," Journal of International Economics, Elsevier, vol. 23(1-2), pages 77-95, August.
- Herguera, Inigo & Kujal, Praveen & Petrakis, Emmanuel, 2000. "Quantity restrictions and endogenous quality choice," International Journal of Industrial Organization, Elsevier, vol. 18(8), pages 1259-1277, December.
- Petrakis, Emmanuel & Kujal, Praveen & Herguera, Iñigo, 1994. "Quantity restrictions and endogeneous quality choice," UC3M Working papers. Economics 2969, Universidad Carlos III de Madrid. Departamento de Economía.
- Carl Shapiro, 1983. "Premiums for High Quality Products as Returns to Reputations," The Quarterly Journal of Economics, Oxford University Press, vol. 98(4), pages 659-679. Full references (including those not matched with items on IDEAS)