On MQS regulation, innovation and market coverage

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Abstract

We revisit Maxwell's (1998) analysis to show that his results are incompatible with the assumption of full market coverage. As a consequence, the effects of MQS regulation on the high-quality firm's incentive to adopt a more efficient technology cannot be assessed in this model. © 2010 Elsevier B.V.

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Bacchiega, E., Lambertini, L., & Mantovani, A. (2010). On MQS regulation, innovation and market coverage. Economics Letters, 108(1), 26–27. https://doi.org/10.1016/j.econlet.2010.04.001

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