Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 31, 2023 erstellt
Beschreibung:
We examined the effect of a rating system on sellers' entry into and exit from platform markets with monopolistic competition. We explicitly introduced a parameter for rating accuracy and analyzed sellers with varying product qualities by introducing a logit-type monopolistic competition. We obtained results of two types: First, in the absence of additional costs for improving the rating system, if consumer surplus maximization and platform profit maximization have interior solutions, they coincide. Second, if a platform faces a convex cost function for improving the rating system, it underprovides the accuracy of the rating system