Arbeitspapier
Consumer salience and quality provision in (un)regulated public service markets
This paper examines the publication of quality indicators in service markets with public finance systems, such as education and healthcare markets. We provide a spatial model of product differentiation in which the reporting of such indicators increases consumers' decision weight on quality relative to other attributes (such as prices and horizontal match) and study the effects in two market environments: markets with regulated prices and markets with unregulated prices. We find that the publication of quality indicators increases quality investments by service providers, but also leads to higher prices and less product variety. Consumer and total welfare may decrease with such policies, in particular when consumers are heavily subsidised.
- Language
-
Englisch
- Bibliographic citation
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Series: ZEW Discussion Papers ; No. 20-087
- Classification
-
Wirtschaft
Information and Product Quality; Standardization and Compatibility
Economics of Regulation
Health: General
Education and Research Institutions: General
- Subject
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Service markets
Quality reporting
Variety
Entry
Regulation
Public finance
- Event
-
Geistige Schöpfung
- (who)
-
Gu, Yiquan
Rasch, Alexander
Wenzel, Tobias
- Event
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Veröffentlichung
- (who)
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ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
- (where)
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Mannheim
- (when)
-
2020
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Gu, Yiquan
- Rasch, Alexander
- Wenzel, Tobias
- ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
Time of origin
- 2020
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