Skip Ribbon Commands
Skip to main content
Home | Support RFF | Join E-mail List | Contact
RFF Logo
Skip navigation links
RESEARCH TOPICS
CENTERS
PUBLICATIONS
NEWS
EVENTS
RESEARCHERS
ABOUT RFF
 

 

 
Join E-mail List
Please provide your e-mail address to receive periodic newsletters and invitations to public events
 
 
Markets with Untraceable Goods of Unknown Quality: A Market Failure Exacerbated by Globalization
Timothy McQuade, Stephen W. Salant, Jason Winfree
RFF Discussion Paper 09-31 | April 2010
RESEARCH TOPICS:
Abstract
In markets for fruits, vegetables, and many imported goods, consumers cannot discern quality prior to purchase and can never identify the producer. Producing high-quality, safe goods is costly and raisesthe "collective reputation" for quality shared with rival arms. Minimum quality standards imposed on all arms improve welfare. If consumers can observe the country of origin of a product, quality, profits, and welfare increase. If one country imposes a minimum quality standard on its exports, consumers benefit, the profits of arms in the country with regulation rise, and the profits of arms in countries without regulation fall.
RELATED SUBTOPICS
Food Safety, Global Trade
RFF Home | RFF Press: An Imprint of Routledge Terms of Use | Privacy Policy | Copyright Notice
1616 P St. NW, Washington, DC 20036 ยท 202.328.5000 Feedback | Contact Us