Marette, Stéphan (contributor) - 2005
-party. The inverse
demand by consumers is p(Q)=a-Q, where p(Q) and Q respectively denote the price and the
quantity with a >0 …’ profits, the consumers’ surplus and the third party’s and tax
payers’ losses), while inspecting a minimum number of firms x … investment C), if (1, ) (0, )F Fand low-quality
products otherwise. The consumers’ surplus is
(2) 222*
0
* )1 …