Lutz, Stefan; Lyon, Thomas P; Maxwell, John W - C.E.P.R. Discussion Papers - 1998
In many markets governments set minimum quality standards while some sellers choose to compete on the basis of quality … by exceeding them. Such ‘high-quality’ strategies often win public acclaim, especially when ‘environmental friendliness … product differentiation. A minimum quality standard leads both the high-quality and the low-quality firm to increase product …