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ArtikelQuality Choice, Trade Policy, and Firm Incentives  
Oleh: Reitzes, James D.
Jenis: Article from Bulletin/Magazine
Dalam koleksi: INTERNATIONAL ECONOMIC REVIEW vol. 33 no. 4 (1992), page 817-836.
Topik: trade policy; quality choice; trade policy; firm incentives
Ketersediaan
  • Perpustakaan Pusat (Semanggi)
    • Nomor Panggil: II49.2
    • Non-tandon: 1 (dapat dipinjam: 0)
    • Tandon: tidak ada
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Isi artikelQuality choice is examined in a duopoly with one foreign and one domestic firm, where consumers have similar preferences for quality but different preferences for brands. Firms make quality commitments prior to choosing price, and policy intervention assumes several forms. The policy conclusions depend on whether firms face "set - up" costs in raising product quality. In the absence of set - up costs, both domestic and foreign firms make socially optimal quality choices. In the presence of set - up costs, the foreign firm, and often the domestic firm, sets quality below the socially optimal level. Incomplete information alters these conclusions, however.
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