Entry restrictions and the determination of quality

Walter Garcia-Fontes and Hugo Hopenhayn

Spanish Economic Review, 2000, vol. 2, issue 2, 105-127

Abstract: Entry restrictions are a common form of regulation in markets and occupations, either as a means of limiting the size of a market or affecting the quality of products or services provided by it. This paper analyzes demand, cost and informational characteristics that affect the impact of this type of policies on the quality mix of products provided by an industry and the welfare of its consumers. Selective increases in the costs of entry such as licensing requirements and direct restrictions with competitive bidding for entry rights are considered. We analyze the effects of these policies on entry decisions and also the additional selection effects that are obtained when exit is allowed for and the rights to participate in an industry can be freely traded.

Keywords: Quality; licenses; entry (search for similar items in EconPapers)
JEL-codes: D45 D82 L15 L50 (search for similar items in EconPapers)
Date: 2000-09-20
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://link.springer.de/link/service/journals/10108/papers/0002002/00020105.pdf (application/pdf)
Access to the full text of the articles in this series is restricted

Related works:
Working Paper: Entry restrictions and the determination of quality (1992)
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:spr:specre:v:2:y:2000:i:2:p:105-127

Ordering information: This journal article can be ordered from
http://www.springer. ... etailsPage=societies

Access Statistics for this article

Spanish Economic Review is currently edited by Eduardo Ley

More articles in Spanish Economic Review from Springer, Spanish Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().