Reputation and Competition for Information Intermediaries
2011/07/12
研討會日期 : 2011-07-12
時間 : 14:30
主講人 : Professor Pei-Yu Lo
地點 : Conference Room B110
演講者簡介 : Pei-Yu Lo got her Ph.D. in Economics from Yale University in 2006. She is currently serving as Assistant Professor of School of Economics and Finance at The University of Hong Kong. Her research field is in game theory, microeconomic theory, and development economics.
演講摘要 : This paper investigates the effect of competition on the reputation mechanism in the market for information intermediaries, such as rating agencies. I use a dynamic model to endogenize the value of reputation so as to enable comparison of equilibria under different market structures. In the model, behavior is determined by weighing the current rating fee against the future value the rating agency derives from having a higher reputation. I show that competition worsens the quality of ratings by reducing the value of high reputation but not the short-term gain of cheating.
