This paper demonstrates that voluntary export restraints may be socially desirable to upgrade the quality of export products. When informational externalities in the recognition of quality result in suboptimal production of quality by competitive firms and the enforcement of socially desirable...

When subsidies and tariffs are applied to imports with fluctuating prices, it is shown that the output response of domestic producers depends on market structure and their attitude toward risk. The domestic industry response is contrasted under two types of market structure, a monopoly and a...

A monopolist facing a market of heterogeneous consumers will distort the quality a rray. This paper explores three regulatory remedies-minimum quality s tandards (MQS), maximum price regulation (MPR), and rate of return re gulation (RORR)-that can counteract this distortion. MQS and MPR rais e...

This paper examines the impact of the presence of a forward exchange market on the financial and operational decisions of a multinational firm. The study concentrates especially on the effects of increased uncertainly and increased risk aversion on the part of the multinational firm. It is shown...

In this note, the authors extend earlier work that examined the distortions in product quality created by a monopolist selling to consumers with different and unobservable tastes. When consumers have differing absolute and marginal willingness to pay for quality, they demonstrate that the...

A monopolist that sells in a market in which consumers differ in their willingness to pay for qua lity will distort and enlarge the range of products offered for sale. The authors examine the positive and normative impacts of remedies u sed to counteract such distortions. For the case of a price...