down due to an unraveling process similar to Akerlof (1970). De and Nabar (1991) argue that imperfect certification …Viscusi (1978) shows how, in markets with quality uncertainty, perfect certification results in separation from top … prevents unraveling so that equilibria with full separation do not exist. This note shows that, if one considers the buyers …

down due to an unraveling process similar to Akerlof (1970). De and Nabar (1991) argue that imperfect certification …Viscusi (1978) shows how, in markets with quality uncertainty, perfect certification results in separation from top … prevents unraveling so that equilibria with full separation do not exist. This note shows that, if one considers the buyers …

strong implications for the industrial organization of certification markets: 1) Honest certification requires high prices … that may even exceed the static monopoly price. 2) Honest certification exhibits economies of scale and constitutes a …

This paper proposes a model for a certification market with an imperfect testing technology. Such a technology only … certification service. It is true that in such an equilibrium having a certificate is better than not. The exact value of a … accounting shows that the monopolistic certifier's profit maximizing conduct can lead to under or over supply of certification …

We compare certification to a minimum quality standard (MQS) policy in a duopolistic industry where firms incur quality … certification policy, which awards firms with a certificate if the quality of their products exceeds some threshold, does not … restrict the firms' quality choice. In contrast to an MQS, certification may lead to more differentiated goods and higher …

Who does, and who should initiate costly certification by a third party under asymmetric quality information, the buyer …-induced certification acts as an inspection device, whence seller-induced certification acts as a signalling device. Seller …-induced certification maximizes the certifier's profit and social welfare. This suggests the general principle that certification is, and …

This paper studies the interaction of information disclosure and reputational concerns in certification markets. We …