EconPapers    
Economics at your fingertips  
 

Optimal Quality Certification

Andriy Zapechelnyuk

American Economic Review: Insights, 2020, vol. 2, issue 2, 161-76

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.

JEL-codes: D82 L15 (search for similar items in EconPapers)
Date: 2020
Note: DOI: 10.1257/aeri.20190387
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.aeaweb.org/doi/10.1257/aeri.20190387 (application/pdf)
https://www.aeaweb.org/doi/10.1257/aeri.20190387.ds (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: Optimal Quality Certification (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aerins:v:2:y:2020:i:2:p:161-76

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Review: Insights is currently edited by Amy Finkelstein

More articles in American Economic Review: Insights from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

 
Page updated 2020-08-13
Handle: RePEc:aea:aerins:v:2:y:2020:i:2:p:161-76