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| Hans Zenger |
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| ''The Optimal Regulation of Product Quality under Monopoly'' |
| ( 2006, Vol. 12 No.13 ) |
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| This paper characterizes the optimal quality regulation of a monopolist when quality is observable. In contrast to Sheshinski (1976) it is shown that a minimum quality standard may be desirable even if it induces the firm to reduce output. |
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| Keywords: Monopoly |
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
L5 - Regulation and Industrial Policy: General |
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| Manuscript Received : Dec 13 2006 | | Manuscript Accepted : Dec 13 2006 |
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