Let me inform you of the following online research seminar.

Date: November 13, 2020
Time: 17:15-18:45 (Ports open at 17:00)
Venue: Online Seminar in Zoom
Speaker: Ken Aoki (Sophia University)
Coordinators: Kohei Kamaga and Mingchao Sun
Language: Japanese

Title: Informational Externalities Arising from Quality Uncertainty: An Application to CHW Service Market (jointly with Takuya Hasebe)

Abstract: Reputation for a group matters. In this paper, we demonstrate that when consumers do not know the service quality of a supplier but know only the quality distribution in the group that the supplier belongs to, production externality occurs among suppliers within the group. Some suppliers' behavior changes productivity of others. Furthermore, the group may employ too much suppliers if these externalities are ignored. Then, we apply this model to the market for community health worker (CHW) service and show that hiring more CHWs looks desirable even though it is not so in reality because of externality.

* Please contact the coordinators via email, if you'd like to participate in the online seminar.