Collective reputation, entry and minimum quality standard

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.

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Year of publication:	2008
Authors:	Rouvière, Elodie ; Soubeyran, Raphaël
Publisher:	Milano : Fondazione Eni Enrico Mattei (FEEM)
Subject:	Nahrungsmittelgewerbe \| Prestige \| Marktstruktur \| Markteintritt \| Produktqualität \| Qualitätsmanagement \| Theorie \| Collective Reputation \| Entry \| Minimum Quality Standard

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Series:	Nota di Lavoro ; 2008,7
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	560335628 [GVK] hdl:10419/40677 [Handle]
Classification:	L11 - Production, Pricing, and Market Structure Size; Size Distribution of Firms ; H41 - Public Goods ; I18 - Government Policy; Regulation; Public Health ; Q18 - Agricultural Policy; Food Policy
Source:	EconStor

Persistent link: https://www.econbiz.de/10010270951