Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159179
Authors: 
Franzoni, Luigi Alberto
Year of Publication: 
1998
Series/Report no.: 
Quaderni - Working Paper DSE 338
Abstract: 
This paper offers a theoretical analysis of imperfect competition in certification markets. Firms that intend to engage in a regulated activity must produce third-party certification of compliance with prescribed regulations and standards. The certification service is provided by independent certifiers competing à la Cournot. We show that the interaction between certifiers and firms results in a market equilibrium that can be illuminated by the techniques of standard oligopoly theory. When certifiers' liability is not too low, the certify cation fee is determined by the degree of concentration of the certification market. Due to the peculiarity of this market, a lower concentration is not always socially desirable.
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper

Files in This Item:
File
Size
231.5 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.