Date of This Version
February 2008
Abstract
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.
Recommended Citation
Soubeyran, Raphael and Rouvière, Elodie, "Collective Reputation, Entry and Minimum Quality Standard" (February 12, 2008). Fondazione Eni Enrico Mattei Working Papers. Paper 171.
https://services.bepress.com/feem/paper171
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