Optimal Certification Design

15:00, December 20, 2023~17:00, December 20, 2023

611 Siyuan East Building, Beijing Jiaotong University, Haidian District, Beijing

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Liu Yu

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Registration deadline: 2023-12-20 15:00
Cancellation time: 2023-12-20 15:00
Lecturer: Chen Bin
Organizer: School of Economics and Management
intended for: Undergraduate, Master of Science, Postgraduate, Master of Science [MBA, EMBA, Master of Audit (MAud), Master of Applied Statistics (MAS), Master of Engineering Management (MEM), International Master of Entrepreneurship and Innovation (EIV), Master of Accounting (MPAcc), Master of Asset Appraisal (MV), Master of Finance (MF), Master of Engineering (ME)] Postdoctoral faculty alumni
Expense description: Free Admission
Activity description
Optimal Certification Design

Time: 15:00 - 17:00, December 20, 2023 (Wednesday)
Location: 611 Siyuan East Building
About the speaker: Chen Bin, professor and doctoral advisor of Huazhong University of Science and Technology, assistant to the dean of School of Economics, director of the Research Center of Digital Economy, was selected into the national youth talent project. In 2010, he obtained his doctorate (PhD) from the School of Economics and Finance of the University of Hong Kong. Mainly engaged in the research of information economics and industrial economics. More than ten English papers have been published in Economic Journal, Journal of Economic Theory, Journal of Economic Behavior and Organization, International Journal of Industrial Organization, Management Science and other international journals, and two papers have been published in Economic Research.
Report summary: We study the optimal certification design in an environment in which (i) the certification institute charges a uniform price; (ii) firms have heterogeneous types and outside options. We find that both the firm's true and outside payoff matter in optimal certification design. If firm's outside payoff is greater than value, the institute does not necessarily exclude the firm from certification, given that the firm's value is low enough. We also provide explanation for why top universities quit university rankings. (joint with Ting Pei)    
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