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Quality, Reputation, And Imports

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  • Worth, Thomas

Abstract

This paper develops a model of how firms determine the quality of their output in a setting of asymmetric information. In this framework, the few lowest-cost firms produce high quality output and the rest produce at low quality due to a free-rider problem. The presence of imports exacerbates this problem.

Suggested Citation

  • Worth, Thomas, 1999. "Quality, Reputation, And Imports," 1999 Annual meeting, August 8-11, Nashville, TN 21567, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea99:21567
    DOI: 10.22004/ag.econ.21567
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    References listed on IDEAS

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    1. A. E. Holmans, 1964. "The Derived Demand Curve Fora Productive Factor And The Industry Supply Curve," Oxford Economic Papers, Oxford University Press, vol. 16(2), pages 235-261.
    2. Mark E. Smith & Eileen O. van Ravenswaay & Stanley R. Thompson, 1988. "Sales Loss Determination in Food Contamination Incidents: An Application to Milk Bans in Hawaii," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(3), pages 513-520.
    3. Bagwell, Kyle & Staiger, Robert W., 1989. "The role of export subsidies when product quality is unknown," Journal of International Economics, Elsevier, vol. 27(1-2), pages 69-89, August.
    4. Leland, Hayne E, 1979. "Quacks, Lemons, and Licensing: A Theory of Minimum Quality Standards," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1328-1346, December.
    5. Carl Shapiro, 1983. "Premiums for High Quality Products as Returns to Reputations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(4), pages 659-679.
    6. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    Full references (including those not matched with items on IDEAS)

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