Minimum Quality Standards in Hedonic Markets with Environmental Externalities

We investigate the introduction of a minimum quality standard (MQS) in a vertically differentiated duopoly with an environmental externality. We establish that the MQS bites only if the hedonic component of consumer preferences is sufficiently strong. Then, we illustrate an underlying tradeoff between the beneficial effects of quality enhancement on prices and the associated undesirable increase in the environmental externality.

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Year of publication:	2011
Authors:	Ecchia, Giulio ; Lambertini, Luca ; Tampieri, Alessandro
Publisher:	Bologna : Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)

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Series:	Quaderni - Working Paper DSE ; 731
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	10.6092/unibo/amsacta/4510 [DOI] 1000780732 [GVK] hdl:10419/159572 [Handle] RePEc:bol:bodewp:WP731 [RePEc]
Classification:	L13 - Oligopoly and Other Imperfect Markets ; L51 - Economics of Regulation ; Q50 - Environmental Economics. General
Source:	EconStor

Persistent link: https://www.econbiz.de/10011651625