English, Article, Journal or magazine article edition: International Strategic Choice of Minimum Quality Standards and Welfare Stefan Lutz; Mario Pezzino

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Bookmark: http://trove.nla.gov.au/version/32627
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • International Strategic Choice of Minimum Quality Standards and Welfare
Author
  • Stefan Lutz
  • Mario Pezzino
Physical Description
  • preprint
Notes
  • We study the influence of minimum quality standards in a two-region partial-equilibrium model of vertical product differentiation and trade. Three alternative standard setting arrangements are considered: Full Harmonization, National Treatment and Mutual Recognition. The analysis integrates the choice of a particular standard setting alternative by governments into the model. We provide a set of sufficient conditions for which Mutual Recognition emerges as one regulatory alternative that always improves welfare in both regions when compared to the case without regulation. We show that Mutual Recognition, being the default procedure if governments do not reach a unanimous decision, is the only possible equilibrium of the game.
  • product differentiation, oligopoly, trade, quality standards, policy coordination
  • RePEc:icr:wpicer:02-2009
Language
  • English
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