In industries with imperfect consumer information, the lack of a reputation puts latecomers at a competitive disadvantage vis-à-vis established firms. We consider whether the existence of such informational barriers to entry provides a valid reason for temporarily protecting infant producers of experience goods and services. Our model incorporates both moral hazard in an individual firm's choice of quality and adverse selection among potential entrants into the industry. We find that infant-industry protection often exacerbates the welfare loss associated with these market imperfections.
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Classical Economics Reconsidered. This content is only available as a PDF. Get Adobe Reader. Part I of the summary provides the reader with a foundation in environmental economics and climate science. Part II presents the benefits to humanity of fossil fuels, addressing human prosperity, environmental benefits, and human health benefits.
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This book reconsiders the field of health economics as it is traditionally taught and practiced. It critically examines economic theory as applied to the health sector and questions the prevailing belief that a competitive healthcare marketplace results in the best outcomes. New information, including an overview of standard microeconomic theory, makes this new edition an...more
Published November 12th 2004 by Health Administration Press (first published January 1st 1998)
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The Economics Of Health And Health Care
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