Optimal number of standards under economies of scope in quality

Stivers [Stivers, Andrew E., 2003. Quality standards with exogenously distributed quality. Economics Letters 80 (1) 130-136.] finds the optimal segmentation of quality when the distribution of quality is exogenous. This paper characterizes the optimal number of standards. As the cost of information falls, both the number of standards and the market coverage of the firm rise. (c) 2005 Elsevier B.V. All rights reserved.