English, Article edition: Yardstick Competition and Quality Thomas P. Tangerås

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Physical Description
  • article
Language
  • English

Edition details

Title
  • Yardstick Competition and Quality
Author
  • Thomas P. Tangerås
Physical Description
  • article
Notes
  • "This paper explores the consequences for quality of introducing yardstick competition in duopoly when a verifiable quality indicator is available. Yardstick competition can be implemented by a menu of transfers that are linear in the cost differential between the two firms and in quality. Cost- and quality incentives are stronger in larger firms when improvements are highly valued by consumers and firms can significantly influence quality. Expenditures on quality improvement can increase or decrease following the introduction of yardstick competition. The crucial factor is the likelihood ratio of productivity between the two firms, not productivity differences." Copyright (c) 2009, The Author(s) Journal Compilation (c) 2009 Wiley Periodicals, Inc..
  • RePEc:bla:jemstr:v:18:y:2009:i:2:p:589-613
Language
  • English
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