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Trade and strategic regulatory bias in monopolistic industries

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posted on 2005-08-02, 14:13 authored by Huw EdwardsHuw Edwards
Regulatory standards, such as on health and safety, may be subject to strategic bias when a country engages in trade. Where regulation is to correct an undersupply of quality by a monopolistic industry, if regulators do not cooperate and …rms can vary standards, there will be a tendency to strategic overregulation, which leads to excessive, rather than inadequate trade. When there is a mixture of horizontal and vertical quality regulations, the pro…t-shifting motive for protection is less than the previous literature suggests. In this case, contrary to previous …ndings, mutual recognition agreements lead to underregulation.

History

School

  • Business and Economics

Department

  • Economics

Pages

408834 bytes

Publication date

2004-09

Notes

Economics Research Paper, no. 04-21

Language

  • en

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