Regulatory Choice between a Label and a Minimum-Quality Standard, The
This paper revisits the issue of the regulatory choice between a mandatory label and a minimum-quality standard. When the cost of regulation is relatively low, we show that the socially optimal choice depends on the producers' cost structure for complying with regulation and improving quality. Under a marginal cost for improving quality, the mandatory labeling is sufficient for reaching the socially optimal level of quality. Under a fixed cost for improving quality, we show that each instrument or the combination of both instruments may emerge at the equilibrium.
|Date of creation:||Dec 2005|
|Date of revision:|
|Contact details of provider:|| Postal: 578 Heady Hall, Ames, IA 50011-1070|
Web page: http://www.fapri.iastate.edu/
More information through EDIRC
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.:
- Crampes, Claude & Hollander, Abraham, 1995.
"How Many Karats Is Gold: Welfare Effects of Easing a Denomination Standard,"
Journal of Regulatory Economics,
Springer, vol. 7(2), pages 131-43, March.
- Crampes, C. & Hollander, A., 1992. "How Many Karats Is Gold: Welfare Effects of Easing a Denomination Standard," Papers 92.271, Toulouse - GREMAQ.
- Crampes, C. & Hollander, A., 1992. "How Many Karats Is Gold: Welfare Effects of Easing a Denomination Standard," Cahiers de recherche 9225, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Crampes, C. & Hollander, A., 1992. "How Many Karats Is Gold: Welfare Effects of Easing a Denomination Standard," Cahiers de recherche 9225, Universite de Montreal, Departement de sciences economiques.
When requesting a correction, please mention this item's handle: RePEc:ias:fpaper:05-wp416. 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 references are entirely missing, you can add them using this form.