Bacchiega, Emanuele ; Lambertini, Luca ; Mantovani, Andrea
(2006)
On MQS regulation, innovation and market coverage.
Bologna:
Dipartimento di Scienze economiche DSE,
p. 8.
DOI 10.6092/unibo/amsacta/4710.
In: Quaderni - Working Paper DSE
(575).
ISSN 2282-6483.
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Abstract
We revisit Maxwell’s (1998) analysis to show that MQS regulation has no effects on the high-quality firm’s incentive to adopt a more efficient technology in a vertically differentiated duopoly with full market coverage and convex costs of quality improvements which are independent of the scale of production.
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