Bacchiega, Emanuele Lambertini, Luca Mantovani, Andrea
Year of Publication:
Quaderni - Working Paper DSE No. 575
Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE), Bologna
We revisit Maxwell's (1998) analysis to show that MQS regulation has no effects on the high-quality firm's incentive to adopt a more efficient technology in a vertically differentiated duopoly with full market coverage and convex costs of quality improvements which are independent of the scale of production.