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Title:Collective reputation, entry and minimum quality standard PDF Logo
Authors:Rouvière, Elodie
Soubeyran, Raphaël
Issue Date:2008
Series/Report no.:Nota di lavoro // Fondazione Eni Enrico Mattei: ETA, Economic theory and applications 2008,7
Abstract: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.
Subjects:Collective Reputation
Entry
Minimum Quality Standard
JEL:L11
H41
I18
Q18
Document Type:Working Paper
Appears in Collections:FEEM Working Papers, Fondazione Eni Enrico Mattei

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