Arbeitspapier

Location costs, product quality, and implicit franchise contracts

In the literature on international trade, very little attention has been given to informational asymmetries between firms and consumers with respect to product quality. The few economic models that analyze the question of how asymmetric information about product quality might affect trade flows treat product quality as exogenous. In contrast, our model takes product quality as an endogenous variable, i.e. firms can choose the quality they wish to produce. In this case, location costs can signal product quality under certain conditions and thereby affect international trade flows. More specifically, intra-industry trade in vertical differentiated experience goods can be determined by information asymmetries about product quality.

Sprache
Englisch

Erschienen in
Series: WZB Discussion Paper ; No. FS IV 98-8

Klassifikation
Wirtschaft

Ereignis
Geistige Schöpfung
(wer)
Haucap, Justus
Wey, Christian
Barmbold, Jens
Ereignis
Veröffentlichung
(wer)
Wissenschaftszentrum Berlin für Sozialforschung (WZB)
(wo)
Berlin
(wann)
1998

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Haucap, Justus
  • Wey, Christian
  • Barmbold, Jens
  • Wissenschaftszentrum Berlin für Sozialforschung (WZB)

Entstanden

  • 1998

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