Daily Adams

Markets over regulations

“A new study conducted for the Mercatus Center at George Mason University shows that reputational feedback mechanisms—buyers’ and sellers’ abilities to rate one another and share information about their interactions—can help correct these information deficiencies better than traditional regulatory approaches. The Internet and the expansion of the “sharing economy” have provided a solution to the information deficiency problem where regulations have been ineffective. The continued use of outdated regulatory approaches may in fact prove detrimental to consumers.”

Via How the Internet, the Sharing Economy, and Reputational Feedback Mechanisms Solve the “Lemons Problem” @ Mercatus.

Comments are closed.