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 trade-off between the beneficial effects of quality enhancement on prices and the associated undesirable increase in the environmental externality. © 2012 Springer Science+Business Media Dordrecht.
Minimum Quality Standards in Hedonic Markets with Environmental Externalities / Ecchia, G.; Lambertini, L.; Tampieri, A.. - In: ENVIRONMENTAL MODELING & ASSESSMENT. - ISSN 1420-2026. - 18:3(2013), pp. 319-323. [10.1007/s10666-012-9345-z]
Minimum Quality Standards in Hedonic Markets with Environmental Externalities
Tampieri A.
2013
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 trade-off between the beneficial effects of quality enhancement on prices and the associated undesirable increase in the environmental externality. © 2012 Springer Science+Business Media Dordrecht.
Pubblicazioni consigliate
I metadati presenti in IRIS UNIMORE sono rilasciati con licenza Creative Commons CC0 1.0 Universal, mentre i file delle pubblicazioni sono rilasciati con licenza Attribuzione 4.0 Internazionale (CC BY 4.0), salvo diversa indicazione.
In caso di violazione di copyright, contattare Supporto Iris
