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Product Quality Regulation: A General Equilibrium Analysis

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  • Richard K. Anderson
  • Carl E. Enomoto

Abstract

Utilizing a general equilibrium framework, this paper studies the economic effects of product-quality regulation in competitive ma rket structures. The analysis considers both the short-run and long-r un implications of such regulation upon factor rewards and allocation s and upon product price. It also characterizes the adjustment path t o a competitive long-run equilibrium. The positive relation between r egulated quality and product price is described, and identification o f who gains and who loses and how resource allocations are affected i s shown to depend upon factor intensity rankings.

Suggested Citation

  • Richard K. Anderson & Carl E. Enomoto, 1987. "Product Quality Regulation: A General Equilibrium Analysis," Canadian Journal of Economics, Canadian Economics Association, vol. 20(4), pages 735-749, November.
    • Handle: RePEc:cje:issued:v:20:y:1987:i:4:p:735-49
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    Cited by:

    1. Daniel Flores, 2009. "All you can drink: should we worry about quality?," Journal of Regulatory Economics, Springer, vol. 35(1), pages 1-18, February.
    2. Walter Garcia Fontes & Massimo Motta, 1994. "Quality of professional services under price floors," Economics Working Papers 87, Department of Economics and Business, Universitat Pompeu Fabra.

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