Download This PaperThe Optimal Regulation of Product Quality Under Monopoly
Economics Bulletin, Vol. 12, No. 13, pp. 1-4, 2006
5 Pages Posted: 18 May 2011
Date Written: 2006
Abstract
This paper characterizes the optimal quality regulation of a monopolist when quality is observable. In contrast to Sheshinski (1976) it is shown that a minimum quality standard may be desirable even if it induces the firm to reduce output.
Suggested Citation: Suggested Citation
Zenger, Hans, The Optimal Regulation of Product Quality Under Monopoly (2006). Economics Bulletin, Vol. 12, No. 13, pp. 1-4, 2006, Available at SSRN: https://ssrn.com/abstract=1844750
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