This paper analyzes public certification program where the government sets a quality standard and provides labels to sellers whose qualities are above the standard. Buyers are uninformed of sellers¡¯ qualities without the program. We study an optimal level of quality standard or optimal ratio...

The entry of a foreign firm has two counterbalancing effects on domestic social welfare. As the competition level in the domestic market increases by the entry, domestic incumbent firms' outputs and profits decrease. On the other hand, the price goes down and thus consumers' surplus increases....