Minimum Quality Standards in Hedonic Markets with Environmental Externalities

Ecchia, Giulio ; Lambertini, Luca ; Tampieri, Alessandro (2011) Minimum Quality Standards in Hedonic Markets with Environmental Externalities. Bologna: Dipartimento di Scienze economiche DSE, p. 11. DOI 10.6092/unibo/amsacta/4510. In: Quaderni - Working Paper DSE (731). ISSN 2282-6483.
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Abstract

We investigate the introduction of a minimum quality standard (MQS) in a vertically differentiated duopoly with an environmental externality. We establish that the MQS bites only if the hedonic component of consumer preferences is sufficiently strong. Then, we illustrate an underlying tradeoff between the beneficial effects of quality enhancement on prices and the associated undesirable increase in the environmental externality.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Ecchia, Giulio
Lambertini, Luca
Tampieri, Alessandro
Keywords
MQS, environmental externality, product quality
Subjects
ISSN
2282-6483
DOI
Deposit date
02 Feb 2016 11:32
Last modified
02 Feb 2016 11:32
URI

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