Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/159356 
Year of Publication: 
2004
Series/Report no.: 
Quaderni - Working Paper DSE No. 515
Publisher: 
Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE), Bologna
Abstract: 
The present note shows that "innocuous" Minimum Quality Standards, namely standards that are below the lowest quality level observed in the market, may have effects on equilibrium outcomes. In particular this is true in a duopoly where one high quality firm invests in R&D to lower its cost of quality improvements. A Standard that is below, but close to, the lowest quality observed in the market reduces the incentive to invest by the quality leading firm.
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Working Paper

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