Seminar No. 223
Title: Raising the Bar: Certification Thresholds and Market Outcomes
Speaker: Xiang Hui, Washington University in St. Louis
Time: May 13th, 2020 10:00-11:30
Venue: Online
About the speaker:
Xiang Hui is an Assistant Professor of Marketing at Washington University in St. Louis. His main research interest is in the design of digital platforms and economics of digitization. Xiang Hui is deeply interested in understanding how efficiency and quality provision on such platforms could be enhanced through market design and platform strategies. He is also interested in understanding the welfare impact of information technology and artificial intelligence in different fields.
Before joining WashU, Xiang Hui was a postdoctoral associate at MIT Sloan Initiative on the Digital Economy. He received his Ph.D. in Economics from The Ohio State University in 2016.
Abstract:
Certification is a ubiquitous tool that alleviates information asymmetries in markets, yet little is known about the impact of certification selectivity on market outcomes. Exploiting a policy change on eBay, we study how a more selective certification threshold affects entry, exit, and incumbent behavior. We develop a stylized model which shows that changes in selectivity impact the distribution of quality and prices in predictable ways. Using rich data from hundreds of online categories on eBay.com, we find support for the model’s hypotheses. Our results help inform the design of certification selectivity in electronic and other markets.
Interested in this webinar? Please contact Feiyan at feiyantang@jnu.edu.cn, or scan the QR code bellow to register by May 12th (12 PM).
