Gu, Yiquan 
ORCID: 0000-0002-4594-4852, Rasch, Alexander and Wenzel, Tobias
(2022)
Consumer salience and quality provision in (un)regulated public service markets.
Regional Science and Urban Economics, 93 (20).
p. 103754.
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Abstract
This article examines the impacts of publishing quality indicators in publicly financed service markets, such as education and healthcare markets. We set up a model in which the reporting of such indicators increases consumers’ decision weight on quality relative to other attributes (prices and horizontal match), affecting the competition between service providers. We use the model to 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 increases prices and reduces variety. Consumer and total welfare can decrease with such policies, particularly when consumers are heavily subsidised.
| Item Type: | Article |
|---|---|
| Additional Information: | Source info: ZEW - Centre for European Economic Research Discussion Paper No. 20-087 |
| Uncontrolled Keywords: | Service markets; Quality reporting; Variety; Entry; Regulation; Public finance |
| Divisions: | Faculty of Humanities and Social Sciences > School of Management |
| Depositing User: | Symplectic Admin |
| Date Deposited: | 22 Dec 2021 09:52 |
| Last Modified: | 04 Jul 2023 14:27 |
| DOI: | 10.1016/j.regsciurbeco.2021.103754 |
| Related URLs: | |
| URI: | https://livrepository.liverpool.ac.uk/id/eprint/3145773 |
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