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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.

Subject(s): International Relations/Trade

Research Methods/ Statistical Methods

Issue Date: 1999

Publication Type: Conference Paper/ Presentation

PURL Identifier: http://purl.umn.edu/21567

Total Pages: 16

Series Statement: Selected Paper

Record appears in: American Agricultural Economics Association (AAEA) > 1999 Annual meeting, August 8-11, Nashville, TN





Author: Worth, Thomas

Source: http://ageconsearch.umn.edu/record/21567?ln=en







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