In this paper we review and extend the theory of quality regulation and of self-regulation and try to see to what extent the present theoretical literature can help to direct the regulatory reform of Italian financial markets. In financial markets, several countries have heavily relied upon self...

This paper shows that the introduction of a minimum quality standard can have repercussions on market structure, opening the possibility of predatory behaviour. The predatory equilibrium exists independently of whether or not adjustment costs are present. Moreover, whenever predation is an...