Minimum Quality Standards and Predatory Behaviour

Luca Lambertini () and Carlo Scarpa

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: This paper shows that the introduction of a premium quality standard can have repercussions on the market structure, opening the possibility of predatory behavior. The predatory equilibrium exists independently of whether or not adjustment costs are present. Moreover, whenever predation is an equilibrium, it is selected by the risk dominance criteria.

Date: 1999-01
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Persistent link: https://EconPapers.repec.org/RePEc:bol:bodewp:353

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