On MQS regulation, innovation and market coverage

  • Bacchiega E
  • Lambertini L
  • Mantovani A
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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.

Author-supplied keywords

  • MQS
  • Market coverage
  • Vertical differentiation

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Authors

  • Emanuele Bacchiega

  • Luca Lambertini

  • Andrea Mantovani

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