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recherche de statut

Recherches Économiques de Louvain/ Louvain Economic Review (1)

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Positional effects, product quality and regulation in duopoly
Luca Lambertini, Raimondello Orsini
Journal:

Recherches Économiques de Louvain/ Louvain Economic Review / Volume 71 / Issue 4 / 2005

Published online by Cambridge University Press:

17 August 2016, pp. 367-381

Print publication:

2005
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We investigate positional effects in a vertically differentiated duopoly, evaluated against the first best. Positional concerns distort the allocation of consumers across varieties, as well as the average quality. If the external effect is sufficiently relevant, the resulting welfare loss is increasing in the extent of the externality itself. The beneficial effect of regulation through a minimum quality standard is analysed.