Market Information Regimes Flashcards
Market information regime meaning
when formal structures end up shaping the way the market works
Briefly, how do market information regimes impact producers and consumers?
often oriented towards consumers but indirectly shape producers, because they care what consumers do
Judgement devices
the information consumers use to choose between products
Experience goods
we don’t know if we like something until we buy it
Credence goods
goods where you can’t measure quality even after the consumption, usually because consumers lack the knowledge or techincal expertise
usually taking someone’s words (e.g. something labeled organic)
Judgement devices components
- Reflect underlying reality
- But have systematic distortions
What are systematic distortions?
they are approximations of reality
What type of information do judgement devices give us?
imperfect information based on the reflection of reality
Judgement devices example
reviews in a magazine
2 broad forms of judgement devices
- Popularity summaries
- Quality metrics
