Hui, Xiang; Jin, Ginger Zhe; Liu, Meng - National Bureau of Economic Research - 2022
Quality certification is a common tool to reduce asymmetric information and enhance trust in marketplaces. Should the …, incorporating output measures makes the certificate more relevant for consumer experience, but doing so may discourage seller effort … bias for sellers in critical markets and a clearer threshold motivates sellers to just reach the threshold. The new regime …