On MQS Regulation, Innovation and Market Coverage
University of Bologna, Italy, Department of Economics Working Paper DSE No. 575
7 Pages Posted: 16 Sep 2007
Date Written: Novermber 2006
Abstract
We revisit Maxwell's (1998) analysis to show that MQS regulation has no effects on the high-quality firm's incentive to adopt a more efficient technology in a vertically differentiated duopoly with fixed costs of quality improvement and full market coverage.
Keywords: MQS, vertical differentiation, market coverage
JEL Classification: L13 L51,O31
Suggested Citation: Suggested Citation
Bacchiega, Emanuele and Lambertini, Luca and Mantovani, Andrea, On MQS Regulation, Innovation and Market Coverage (Novermber 2006). University of Bologna, Italy, Department of Economics Working Paper DSE No. 575, Available at SSRN: https://ssrn.com/abstract=1014365 or http://dx.doi.org/10.2139/ssrn.1014365
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