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| Stephan Marette |
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| ''Is a Minimum Quality Standard Socially Optimal?'' |
| ( 2008, Vol. 12 No.39 ) |
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| This paper explores the role of a minimum quality standard when the quality choice is discrete. A minimum quality standard is never a socially optimal policy under Bertrand and Cournot competition. Conversely, it is often optimal to subsidize or tax the high quality in order to implement different firms' choices corresponding to a situation of welfare maximization. |
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| Keywords: |
JEL: L5 - Regulation and Industrial Policy: General
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| Manuscript Received : Oct 27 2008 | | Manuscript Accepted : Dec 14 2008 |
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