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On MQS Regulation, Innovation and Market Coverage


Emanuele Bacchiega


University of Bologna - Department of Economics

Luca Lambertini


University of Bologna - Department of Economics

Andrea Mantovani


Catholic University of Louvain
Novermber 2006

University of Bologna, Italy, Department of Economics Working Paper DSE No. 575

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.

Number of Pages in PDF File: 7

Keywords: MQS, vertical differentiation, market coverage

JEL Classification: L13 L51,O31

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Date posted: September 16, 2007  

Suggested Citation

Bacchiega, Emanuele, Lambertini, Luca and Mantovani, Andrea, On MQS Regulation, Innovation and Market Coverage (Novermber 2006). Available at SSRN: http://ssrn.com/abstract=1014365 or http://dx.doi.org/10.2139/ssrn.1014365

Contact Information

Emanuele Bacchiega (Contact Author)
University of Bologna - Department of Economics ( email )
Piazza Scaravilli 2
40126 Bologna, 40125
Italy
+390512098486 (Phone)
+390512098493 (Fax)
Luca Lambertini
University of Bologna - Department of Economics ( email )
Strada Maggiore 45
Bologna, 40125
Italy
+39 051 2092600 (Phone)
+39 051 2092664 (Fax)
Andrea Mantovani
Catholic University of Louvain ( email )
34 Voie du Roman Pays
B-1348 Louvain-la-Neuve, b-1348
Belgium
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