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"Innocuous" Minimum Quality Standards

Paolo Garella ()

No 606, Working Papers from University of Crete, Department of Economics

Abstract: The present note shows that "innocuous" Minimum Quality Standards, namely below the lowest quality in a market, may have effects on equilibrium outcomes. Such a MQS reduces the incentive to invest in R&D by the quality-leading firm.

Keywords: Regulation; Minimum Quality Standards; Oligopoly; R&D (search for similar items in EconPapers)
JEL-codes: L0 L5 (search for similar items in EconPapers)
Pages: 7 pages
Date: 2006-03-06
New Economics Papers: this item is included in nep-com, nep-ino and nep-mic
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Downloads: (external link) First version, 2006 (application/pdf)

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