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and price in two segmented markets. Minimum quality standards, set according to the principle of Mutual Recognition, can … be used to increase welfare. The results of the one-shot game suggest that standards achieve initial convergence in terms …' qualities in the previous period determine their costs. In an N-period game, quality standards will in fact lead to convergence …
Persistent link: https://www.econbiz.de/10010298134
I present a model of vertical product differentiation and exit where a domestic and a foreign firm face fixed setup costs and quality-dependent costs of production and compete in quality and price in the domestic market. Quality-dependent costs are quadratic in qualities, but independent of the...
Persistent link: https://www.econbiz.de/10010301198
International standards have the potential to both promote and hinder international trade. Yet empirical scholarship on … the standards-trade relationship has been held up due to some methodological challenges: measurement problems, varied … standard on the country-pair trade flows between 91 nations over the 1995-2005 period. To deal with these challenges, we …
Persistent link: https://www.econbiz.de/10010352106
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A quota on foreign competition will generally lead to quality-upgrading (downgrading) of the low-quality (high-quality) firm, an increase in average quality, a reduction of quality differentiation, and a reduction of domestic consumer surplus, irrespective of whether the foreign firm produces...
Persistent link: https://www.econbiz.de/10010519051
A quota on foreign competition will generally lead to quality-upgrading (downgrading) of the low-quality (high-quality) firm, an increase in average quality, a reduction of quality differentiation, and a reduction of domestic consumer surplus, irrespective of whether the foreign firm produces...
Persistent link: https://www.econbiz.de/10011447628
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Collusion is widely condemned for its negative effects on consumer welfare and market efficiency. In this paper, I show that collusion may also in some cases facilitate the creation of unexpected new sources of value. I bring this possibility into focus through the lens of a historical episode...
Persistent link: https://www.econbiz.de/10011876523
Over the past two decades, India and Pakistan have been involved in several activities regar ding bilateral trade … waves of trade-related activity reflected in popular media coverage? This question connects to a longstanding and important …-security issues such as trade. A dearth of popular awareness on trade-related activities between India and Pakistan may limit the …
Persistent link: https://www.econbiz.de/10011807694