Parallel trade,product quality,and welfare |
| |
Authors: | Giorgio Matteucci Pierfrancesco Reverberi |
| |
Affiliation: | Dipartimento di Ingegneria Informatica Automatica e Gestionale Antonio Ruberti, Sapienza — Università di Roma, Italy |
| |
Abstract: | We study the welfare effects of parallel trade (PT) considering investment in quality. We thus revisit the case for PT in research-intensive industries. We find that PT may raise quality, depending on how preferences for quality differ across countries. Conditional on quality, consumer surplus may rise (fall) in the PT-source (PT-recipient) country. While PT reduces ex post welfare, improving quality is a necessary condition for PT to increase welfare ex ante. |
| |
Keywords: | L12 F13 O34 |
本文献已被 ScienceDirect 等数据库收录! |
|