On MQS regulation, innovation and market coverage

We revisit Maxwell's (1998) analysis to show that his results are incompatible with the assumption of full market coverage. As a consequence, the effects of MQS regulation on the high-quality firm's incentive to adopt a more efficient technology cannot be assessed in this model.

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Year of publication:	2010
Authors:	Bacchiega, Emanuele ; Lambertini, Luca ; Mantovani, Andrea
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 108.2010, 1, p. 26-27
Publisher:	Elsevier
Subject:	MQS Vertical differentiation Market coverage

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

Persistent link: https://www.econbiz.de/10008494855