Trade and Strategic Regulatory Bias in Monopolistic Industries

Terence Edwards

Discussion Paper Series from Department of Economics, Loughborough University

Abstract: Regulatory standards, such as on health and safety, may be subject to strategic bias when a country engages in trade. Where regulation is to correct an undersupply of quality by a monopolistic industry, if regulators do not cooperate and …rms can vary standards, there will be a tendency to strategic overregulation, which leads to excessive, rather than inadequate trade. When there is a mixture of horizontal and vertical quality regulations, the profit-shifting motive for protection is less than the previous literature suggests. In this case, contrary to previous findings, mutual recognition agreements lead to underregulation.

Keywords: Trade; oligopoly; regulation; standards; harmonisation. (search for similar items in EconPapers)
JEL-codes: F13 L13 L51 (search for similar items in EconPapers)
Date: 2004-09, Revised 2004-09
New Economics Papers: this item is included in nep-com and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.lboro.ac.uk/departments/ec/Reasearchpapers/2004/qregder10.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.lboro.ac.uk/departments/ec/Reasearchpapers/2004/qregder10.pdf [301 Moved Permanently]--> https://www.lboro.ac.uk/departments/ec/Reasearchpapers/2004/qregder10.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lbo:lbowps:2004-21

Access Statistics for this paper

More papers in Discussion Paper Series from Department of Economics, Loughborough University Contact information at EDIRC.
Bibliographic data for series maintained by Huw Edwards (t.h.edwards@lboro.ac.uk).