Trade, Quality Reputations and Commercial Policy

Abstract

This paper extends recent developments on the role of firm reputations in markets where product quality is unobservable at the time of purchase to an international trading context. Its primary motivation is to demonstrate the implications of this approach to the problem of quality uncertainty for commercial policy, particularly the role of potential nontariff barriers, such as origin labeling requirements and minimum quality standards. Copyright 1989 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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