Lambertini, Luca ; Scarpa, Carlo
(1999)
Minimum Quality Standards and Predatory Behaviour.
Bologna:
Dipartimento di Scienze economiche DSE,
p. 16.
DOI 10.6092/unibo/amsacta/4956.
In: Quaderni - Working Paper DSE
(353).
ISSN 2282-6483.
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Abstract
This paper shows that the introduction of a premium quality standard can have repercussions on the market structure, opening the possibility of predatory behavior. The predatory equilibrium exists independently of whether or not adjustment costs are present. Moreover, whenever predation is an equilibrium, it is selected by the risk dominance criteria.
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