Quality Disclosure and Certification: Theory and Practice / David Dranove, Ginger Zhe Jin.

Format:

Book

Author/Creator:

Dranove, David.

Contributor:

National Bureau of Economic Research.

Jin, Ginger Zhe.

Series:

Working Paper Series (National Bureau of Economic Research) no. w15644.

NBER working paper series no. w15644

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Quality Disclosure and Certification

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2010.

Summary:

This essay reviews the theoretical and empirical literature on quality disclosure and certification. After comparing quality disclosure with other quality assurance mechanisms and describing a brief history of quality disclosure, we address three key theoretical issues: (i) Why don't sellers voluntarily disclose through a process of "unraveling?" (ii) When should government mandate disclosure? and (iii) Do certifiers necessarily report unbiased and accurate information? We further review empirical evidence on these issues, with a particular focus on healthcare, education, and finance. The empirical review covers quality measurement, the effect of third party disclosure on consumer choice and seller behavior, as well as the economics of certifiers.

Notes:

Print version record

January 2010.