Enforcing Domestic Quality Dominance through Quotas*
Nicolas Boccard () and
Review of International Economics, 2005, vol. 13, issue 2, 250-261
We study duopoly competition between a domestic and a foreign firm who first choose their quality and then compete in prices in the domestic market. As is well known, the free‐trade equilibrium exhibits quality differentiation and indeterminacy of the quality leader. We show that an import quota can enforce, as the unique subgame‐perfect equilibrium outcome, the quality ranking that favors the domestic producer and thereby can increase domestic welfare.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16) Track citations by RSS feed
Downloads: (external link)
Working Paper: Enforcing domestic quality dominance through quotas (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:reviec:v:13:y:2005:i:2:p:250-261
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0965-7576
Access Statistics for this article
Review of International Economics is currently edited by E. Kwan Choi
More articles in Review of International Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().