Optimal Quality Certification

A-Tier
Journal: American Economic Review: Insights
Year: 2020
Volume: 2
Issue: 2
Pages: 161-76

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Quality certification not only informs consumers but also stimulates producers to supply better-quality products. We study a problem of quality certification in a moral hazard setting. We show that, under standard assumptions, simple certification systems, such as quality assurance and pass-fail rules, are optimal. Our solution method involves interpreting the certification problem as a delegation problem.

Technical Details

RePEc Handle
repec:aea:aerins:v:2:y:2020:i:2:p:161-76
Journal Field
General
Author Count
1
Added to Database
2026-01-29