Minimum Quality Standards with More Than Two Firms Under Cournot Competition

This paper presents a study of the effects of the introduction of a Minimum Quality Standard (MQS) in a vertically differentiated market in which three identical firms compete in quantities in the short run and face quality-dependent fixed costs. In contrast to what has been shown under the assumption of Bertrand triopolistic competition (Scarpa, 1998), the introduction of an MQS has a positive effect on the average provision of quality.

MoreLess

Year of publication:	2010
Authors:	Pezzino, Mario
Published in:	The IUP Journal of Managerial Economics. - IUP Publications. - Vol. VIII.2010, 3, p. 26-45
Publisher:	IUP Publications

More details

Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008472382