Quality Signaling through Certification in Developing Countries ∗


This paper studies how signaling the credence attributes of consumer goods distorts their market equilibrium in developing countries. Costs of certification, sunk in order to achieve credibility, play a key role in producing an oligopolistic market, leading to high prices that form a barrier for consumers in the South. To lower the cost, certification is… (More)

6 Figures and Tables


  • Presentations referencing similar topics