The Minimum Safety Standard, Consumers’ Information, and Competition, February 2007

This paper explores the effects of a standard influencing care choice. Firm(s) may increase the probability of offering safe products by incurring a cost. Under duopoly, they compete either in prices or in quantities. Under perfect information about safety for consumers, the selected standard that corrects a safety underinvestment is always compatible with competition. Safety over investment only emerges under competition in quantities and relatively low values of the cost. Under imperfect information about safety for consumers, the standard leads to a monopoly situation. However, for relatively large values of the cost, a standard cannot impede the market failure coming from the lack of information.

Pieces of Iowa’s Past, February 1, 2012

Pieces of Iowa’s Past, published by the Iowa State Capitol Tour Guides weekly during the legislative session, features historical facts about Iowa, the Capitol, and the early workings of state government. All historical publications are reproduced here with the actual spelling, punctuation, and grammar retained. February 1, 2012 THIS WEEK: A Different Oath for Senator Vale BACKGROUND: Senator Jacob G. Vale was born July 7, 1821, in York County, Pennsylvania. In 1847, he married Anne Rex, and they moved to Iowa in 1850. Vale farmed in Lee County, and in 1853, he ran on an independent ticket for the legislature but was defeated. He moved to Van Buren County in 1856. In 1861, he was solicited by both parties to become a candidate for the state Senate. He was elected and served as the only independent senator in the 13th General Assembly. Vale also served in the 14th General Assembly in 1872. In 1873, Vale was the Anti-Monopoly candidate for governor of Iowa. Vale died February 17, 1875. His son, B.R. Vale, served in the Iowa Senate from 1888-1896