eprintid: 25856 rev_number: 30 eprint_status: archive userid: 1482 importid: 105 dir: disk0/00/02/58/56 datestamp: 2018-05-22 09:23:16 lastmod: 2024-04-19 06:45:43 status_changed: 2024-04-19 06:45:43 type: article succeeds: 15953 metadata_visibility: show creators_name: Bernard, Christophe creators_name: Calmette, Marie-Françoise creators_name: Kilkenny, Maureen creators_name: Loustalan, Catherine creators_name: Pechoux, Isabelle creators_id: marie-francoise.calmette@tse-fr.eu creators_id: isabelle.pechoux@tse-fr.eu creators_idrefppn: 026763117 creators_idrefppn: 066944643 creators_affiliation: TBS creators_affiliation: Toulouse School of Economics creators_affiliation: NCFAP creators_affiliation: Toulouse School of Economics creators_affiliation: Toulouse School of Economics creators_halaffid: 1002422 creators_halaffid: 1002422 title: Quality in open markets: the sumo conjecture ispublished: pub subjects: subjects_ECO abstract: 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. date: 2018-03 date_type: published publisher: Presses de Sciences Po official_url: http://tse-fr.eu/pub/32479 faculty: tse divisions: tse language: en has_fulltext: TRUE view_date_year: 2018 full_text_status: public publication: Revue économique volume: vol. 69 number: n° 2 place_of_pub: Paris pagerange: 197-224 refereed: TRUE issn: 0035-2764 oai_identifier: oai:tse-fr.eu:32479 harvester_local_overwrite: issn harvester_local_overwrite: publication harvester_local_overwrite: faculty harvester_local_overwrite: publisher harvester_local_overwrite: pending harvester_local_overwrite: creators_idrefppn harvester_local_overwrite: number harvester_local_overwrite: volume harvester_local_overwrite: title harvester_local_overwrite: creators_halaffid harvester_local_overwrite: pagerange harvester_local_overwrite: creators_id harvester_local_overwrite: place_of_pub harvester_local_overwrite: hal_id harvester_local_overwrite: hal_version harvester_local_overwrite: hal_url harvester_local_overwrite: hal_passwd oai_lastmod: 2024-04-18T09:52:54Z oai_set: tse site: ut1 hal_id: hal-04456626 hal_passwd: jk8#bgr hal_version: 1 hal_url: https://hal.science/hal-04456626 citation: Bernard, Christophe, Calmette, Marie-Françoise , Kilkenny, Maureen, Loustalan, Catherine and Pechoux, Isabelle (2018) Quality in open markets: the sumo conjecture. Revue économique, vol. 69 (n° 2). pp. 197-224. document_url: https://publications.ut-capitole.fr/id/eprint/25856/1/wp_tse_505.pdf