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Title: Trade and strategic regulatory bias in monopolistic industries
Authors: Edwards, T. Huw
Keywords: Trade
Issue Date: Sep-2004
Abstract: 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.
Description: Economics Research Paper, no. 04-21
URI: https://dspace.lboro.ac.uk/2134/332
Appears in Collections:Working Papers (Economics)

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