Minimum Quality Standard and Protectionism

Olivier Bonroy ()

Cahiers de recherche from GREEN

Abstract: We studied the protectionist character of a minimum quality standard (MQS). We show that in the fixed cost model where two firms, one local and one foreign, compete in a local market, the implementation of a MQS on the local market is a protectionist political only if the local firm supplies the lower quality, whatever the type of competition (Cournot or Bertrand) and the technology differential between the firms.

Keywords: Minimum Quality Standard; Protectionism; Endogenous Quality (search for similar items in EconPapers)
JEL-codes: F12 F13 (search for similar items in EconPapers)
Date: 2003
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Persistent link: http://EconPapers.repec.org/RePEc:lvl:lagrcr:0302

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