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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  

Emanuele Bacchiega

University of Bologna - Department of Economics

Luca Lambertini

University of Bologna - Department of Economics

Andrea Mantovani

Catholic University of Louvain

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

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

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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