Good Rankings Are Bad : Why Reliable Rankings Can Hurt Consumers

@inproceedings{Bouton2012GoodRA,
  title={Good Rankings Are Bad : Why Reliable Rankings Can Hurt Consumers},
  author={Laurent Bouton and Georg Kirchsteiger},
  year={2012}
}
Rankings have become increasingly popular on various markets, e.g. the market for study programs. We analyze their welfare implications. Consumers have to choose between two goods of unknown quality with exogenous presence or absence of an unbiased informative ranking. The existence of the ranking might a¤ect the welfare of all consumers negatively. With… CONTINUE READING