Standardization reduces uncertainty faced by consumers when choosing products with unknown product quality, which should help those firms without an established brand name in the country of sale and from countries who do not themselves have a reputation for high quality products for the good in...

This paper analyses the impact of standardization on welfare of consumers who rely on signals as indicators of product quality. a variance reduction approach suggests that, after standardization, consumers will choose to rely on fewer signals in their evaluation of product quality. the optimal...