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Collective Reputation, Entry and Minimum Safety Standard AgEcon
Rouviere, Elodie; Soubeyran, Raphael.
This article deals with the issue of entry into an industry where firms share a collective reputation. First, we show that free entry is not socially optimal; there is a need for regulation through the imposition of a minimum quality standard. Second, we argue that a minimum quality standard can induce firms to enter the market. Contrary to conventional wisdom, a minimum quality standard should not always be considered as a barrier to entry.
Tipo: Conference Paper or Presentation Palavras-chave: Collective Reputation; Entry; Minimum Quality Standard; Institutional and Behavioral Economics.
Ano: 2008 URL: http://purl.umn.edu/44465
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Collective Reputation, Entry and Minimum Quality Standard AgEcon
Rouviere, Elodie; Soubeyran, Raphael.
This article deals with the issue of entry into an industry where firms share a collective reputation. First, we show that free entry is not socially optimal; there is a need for regulation through the imposition of a minimum quality standard. Second, we argue that a minimum quality standard can induce firms to enter the market. Contrary to conventional wisdom, a minimum quality standard should not always be considered as a barrier to entry.
Tipo: Working or Discussion Paper Palavras-chave: Collective Reputation; Entry; Minimum Quality Standard; Industrial Organization; L11; H41; I18; Q18.
Ano: 2008 URL: http://purl.umn.edu/6325
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