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Collective Reputation, Entry and Minimum Quality Standard

This article deals with the issue of entry into an industry where firms share a collective reputation. First, we show that free entry is not socially optimal; there is a need for regulation through the imposition of a minimum quality standard. Second, we argue that a minimum quality standard can induce firms to enter the market. Contrary to conventional wisdom, a minimum quality standard should not always be considered as a barrier to entry.
Year of publication:
2008-01
Authors: Soubeyran, Raphaël ; Rouvière, Elodie
Institutions: Fondazione ENI Enrico Mattei (FEEM)
Subject: Collective Reputation | Entry | Minimum Quality Standard
Extent:
application/pdf
Series:
Type of publication: Book / Working Paper
Language: English
Notes:
Number 2008.7
Classification: L11 - Production, Pricing, and Market Structure Size; Size Distribution of Firms ; H41 - Public Goods ; I18 - Government Policy; Regulation; Public Health ; Q18 - Agricultural Policy; Food Policy
Source:
Persistent link: https://www.econbiz.de/10004965188
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