Argenton, Cédric (contributor) - 2006 - Rev. May 8, 2006
average quality supplied. Quantities and cost structures are exogenously given and firms compete in quality. Before choosing … their qualities, they bargain over a perfectly enforcable minimum quality standard. The bargaining outcome is given by the … seemingly adverse cost changes. -- asymmetric information ; minimum quality standard ; duopoly ; bargaining ; free riding …