Testing, Disclosure and Approval
Research output: Working paper › Research
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Testing, Disclosure and Approval. / Bizotto, Jacopo; Rudiger, Jesper; Vigier, Adrien.
2019.Research output: Working paper › Research
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TY - UNPB
T1 - Testing, Disclosure and Approval
AU - Bizotto, Jacopo
AU - Rudiger, Jesper
AU - Vigier, Adrien
PY - 2019/4/6
Y1 - 2019/4/6
N2 - Approval committees selecting candidates or certifying products often base their decisions on a mixture of information, some of which is voluntarily disclosed by applicants, and some which they acquire first-hand, by way of tests or otherwise. We examine the interplay between approvers' first-hand information acquisition and applicants' voluntary disclosure. We show that access to cheaper or more accurate information on the part of approvers might impair disclosure by applicants, resulting in overall lower social welfare and quality of certification. In such cases, the commitment of approvers to simple testing rules can play an important role towards improving social welfare.
AB - Approval committees selecting candidates or certifying products often base their decisions on a mixture of information, some of which is voluntarily disclosed by applicants, and some which they acquire first-hand, by way of tests or otherwise. We examine the interplay between approvers' first-hand information acquisition and applicants' voluntary disclosure. We show that access to cheaper or more accurate information on the part of approvers might impair disclosure by applicants, resulting in overall lower social welfare and quality of certification. In such cases, the commitment of approvers to simple testing rules can play an important role towards improving social welfare.
KW - Faculty of Social Sciences
KW - Certification
KW - Testing
KW - Information Acquisition
KW - Disclosure
KW - C72
KW - D82
KW - D83
KW - G24
KW - G28
U2 - 10.2139/ssrn.2868042
DO - 10.2139/ssrn.2868042
M3 - Working paper
T3 - SSRN: Social Science Research Network
BT - Testing, Disclosure and Approval
ER -
ID: 184807954