Viaene, Jean-Marie; Zhao, Laixun - 2010
This paper examines international trade in tainted food and other low-quality products. Wefirst find that for a large … class of environments, free trade is the trading system that conveysthe highest incentives to produce non-tainted high-quality … to arise becomes more easily satisfied, if the marginal cost of high-quality productionincreases or if errors of testing …