Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5061338 | Economics Letters | 2009 | 4 Pages |
Abstract
A quality certification standard in a competitive setting can improve welfare but may affect consumers and producers differently. In a competitive model with quality preferences of the vertical product differentiation type, we find that producers prefer a higher (lower) quality standard than consumers if individual demand functions are log-convex (log-concave).
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Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Harvey Lapan, GianCarlo Moschini,