Matteucci, Giorgio; Reverberi, Pierfrancesco - Dipartimento di Ingegneria Informatica, Automatica e … - 2013
We study the welfare effects of parallel trade (PT) considering investment in quality. We thus revisit the case for allowing PT in research-intensive industries. We find that quality may be higher with than without PT, depending on how consumersÕ preferences for quality differ across countries....