Damiano, Ettore; Li, Hao; Suen, Wing-chuen - In: Theoretical economics : TE ; an open access journal in … 3 (2008) 3, pp. 325-365
incentive of the agency to exaggerate the quality of the client. In centralized rating, the agency rates all clients together … degree of rating inflation and hence a greater level of credibility than in individual rating. Comparing centralized rating … with decentralized rating, we find that centralized rating dominates decentralized rating for the agency when the …
