Credence goods – regulation and competition. David Stallibrass | Director, Services and Public Markets UCL / HKU Conference | March 2011. A credence spectrum. My job. Medical advice. Barristers. Education. Experience good. Credence good. Medical procedures. Home repairs. Audit.
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Credence goods – regulation and competition
David Stallibrass | Director, Services and Public Markets
UCL / HKU Conference | March 2011
Primarily a consumerproblem:
Mitigated by regulation
Role of competition authority to represent those who do not exist yet
Focus of professional bodies is often on high entry barriers and raising standards exacerbates competition problem
Alternative approach: mitigate underlying information asymmetry by actively supporting transparency and consumer feedback
3: Challenge firms and professionals to compete on quality and know their customer
1: Open up performance and complaints data
2: Commit not to make defamation claims
Often resisted by professional bodies
evidence of losing their focus?
Consumers help each other to choose service provider right for them
Firms and professionals have incentive and knowledge to improve their offering