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| Alexander Kemnitz and Cyrus Hemmasi |
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| ''Price ceilings and quality competition'' |
| ( 2003, Vol. 4 No.20 ) |
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| This paper investigates the quality implications of an upper limit on product prices in a vertically differentiated duopoly. It is shown that a price ceiling diminishes the incentives for strategic product differentiation, thereby improving average quality in the market. |
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| Keywords: |
JEL: D4 - Market Structure and Pricing: General
L1 - Market Structure, Firm Strategy, and Market Performance: General |
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| Manuscript Received : Mar 26 2003 | | Manuscript Accepted : Apr 18 2003 |
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