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differentiated duopoly where firms compete à la Cournot with fixed costs of quality improvement. We show that, if the weight of the …
Persistent link: https://www.econbiz.de/10011737211
We show in a simple model of entry with sunk cost, that a regulator prefers limiting the output, or capacity, of the incumbent firm rather than imposing a "Minimum Quality Standard" in order to help the entrant to provide high quality. As a by-product, our analysis makes a contribution to the...
Persistent link: https://www.econbiz.de/10014213065
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We investigate the introduction of a minimum quality standard (MQS) in a vertically differentiated duopoly with an …
Persistent link: https://www.econbiz.de/10011735200
We study the equilibrium and its stability property in a duopoly market in which minimum quality standards (MQS) are …
Persistent link: https://www.econbiz.de/10013085782
hypothesis may emerge as a market configuration with all green firms spurred by environmental regulation, even if consumers are …
Persistent link: https://www.econbiz.de/10013029948
We investigate the introduction of a minimum quality standard (MQS) in a vertically differentiated duopoly with an …
Persistent link: https://www.econbiz.de/10013128771
In this paper we analyse a setup where consumers are heterogeneous in the perception of environmental quality. The equilibrium is verified in a setting with horizontal and vertical (green) differentiation. Profits are increasing in the misperception of quality, while, the investment in green...
Persistent link: https://www.econbiz.de/10011729940
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' switching costs and the technological choice of the incumbent firm. For example 'customer pays' regulation encourages an … consider the addition of a 'buy back' rule to standard incumbent-firm-pays regulation and show that this is always preferred to … standard firms-pay regulation. Buy-back rules dominate other standard regulatory rules when firms can price discriminate on the …
Persistent link: https://www.econbiz.de/10014146775