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announced quality blue jeans border inspection policy brand-name products Bureau of Economic Carl Shapiro compete for customers competition conditions of free counterfeit-product trade credibility constraint David Card disposition of counterfeit dW/db earn Economic Research entry by counterfeiters entry by home entry is free equilibrium quality expected surplus fakes Figure fixed number foreign country foreign firms foreign producers free entry global welfare high-quality home consumers home firms Home producers home welfare imperfect information incentive increase label legitimate firm limit-pricing equilibrium low-quality jeans marginal cost market share minimum quality National Bureau no-counterfeiting equilibrium non-quality-conscious number of home numeraire optimal parameter Potential Counterfeiting presence of counterfeiters price and quality property rights purchase quality q quality-adjustment effect quality-conscious consumers raise welfare rational expectations reputations second-best sell share of counterfeits sub-game submarket Tariff terms of trade terms-of-trade tighter border Title Date trade in counterfeit trademark owners world welfare zero-profit ZP curve