@article{publications22362, volume = {50}, month = {December}, author = {Vincent R{\'e}quillart and Louis-Georges Soler and Yu Zang}, title = {Quality standards versus nutritional taxes: Health and welfare impacts with strategic firms}, publisher = {Elsevier}, journal = {Journal of Health Economics}, pages = {268--285}, year = {2016}, keywords = {Taxation, MQS, Product differentiation, Strategic pricing, Nutritional policy}, url = {https://publications.ut-capitole.fr/id/eprint/22362/}, abstract = {The goal of this paper is to better understand firms' strategic reactions to nutritional policies targeting food quality improvements and to derive optimal policies. We propose a model of product differentiation, taking into account the taste and health characteristics of products. We study how two firms react to alternative policies: an MQS policy, linear taxation of the two goods on the market, and taxation of the lowquality good. The MQS and the taxation of the low-quality product are the preferred options by a social planner. If taste is moderately important, the MQS policy is chosen by a populist and a paternalist social planner. If taste is a major component of choice, the populist planner chooses to tax the low-quality product whereas the paternalist planner prefers the MQS policy. Finally, for a paternalist social planner, an MQS-based policy always allows for higher levels of welfare than an information policy alone.} }