TY  - JOUR
CY  - Paris
ID  - publications25856
UR  - http://tse-fr.eu/pub/32479
IS  - n° 2
A1  - Bernard, Christophe
A1  - Calmette, Marie-Françoise
A1  - Kilkenny, Maureen
A1  - Loustalan, Catherine
A1  - Pechoux, Isabelle
N2  - We show how a large country’s entrance on world markets can lead to lower and less quality diversity available to consumers rather than more. In our model, autarky quality is directly proportional to the willingness to pay for quality and home market size, and inversely proportional to the cost of quality. We formalize strategically interacting firms, and identify the context in which a low-quality producer can lead, driving high-quality producers out of the market despite the existence of customers willing to pay for higher quality. We discuss the feasibility of this ‘predatory strategy’ by an emerging country. It is more likely in contexts where the emerging exporter is much larger.
VL  - vol. 69
TI  - Quality in open markets: the sumo conjecture
AV  - public
EP  - 224
Y1  - 2018/03//
PB  - Presses de Sciences Po
JF  - Revue économique
SN  - 0035-2764
SP  - 197
ER  -