This paper presents a theoretical model of competition between information intermediaries applied to credit rating industry. Sellers rely on intermediaries to credibly communicate their quality to buyers. Intermediaries are strategic and compete in fees as well as their certification standards...

This paper investigates whether an investor-paid credit rating model leads to rating inflation.Using the corporate bond ratings of Egan-Jones Rating Company, I find evidence that an investor-paid rating agency tends to upgrade bonds that offer a higher yield.This suggests that an investor-paid...