Download or read book Minimum Quality Standards, Fixed Costs, and Competition written by Uri Ronnen and published by Forgotten Books. This book was released on 2018-02-23 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Excerpt from Minimum Quality Standards, Fixed Costs, and Competition: April, 1991 When choosing between alternative policies, legislators are concerned with the effects of the different policies on their constituencies' welfare. Previous research on minimum quality standards (leland (1979) and Shapiro has demonstrated the existence of a group of consumers who are worse ofl' as a result of the mqs policy. They are worse off either because their favorite qualities are no longer supplied or because of the resulting higher prices. The existence of consumers who suffer as a result of the standard might discourage legislators from adopting a socially improving mqs. Contrary to these previous results and concerns, I show again, due to the assumption of price competition in the presence of fixed costs that all participating consumers are strictly better off as a result of the mqs policy. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.