Fear of rejection?
Subtitle: tiered certification and transparency
By: Emmanuel Farhi, Josh Lerner, and Jean Tirole
Contributors: Lerner, Joshua; Tirole, Jean; Harvard Business School
Series: Working paper / Harvard Business School -- 09-062; Working paper (Harvard Business School) -- 09-062
Publisher: Harvard Business School
Published: 2008
Place of publication: Boston
Language: eng
Number of pages: 39
Description: The sub-prime crisis has shown a harsh spotlight on the practices of securities underwriters, which provided too many complex securities that proved to ultimately have little value. This uproar calls attention to the fact that the literature on intermediaries has carefully analyzed their incentives, but that we know little about the broader strategic dimensions of this market. The paper explores three related strategic dimensions of the certification market: the publicity given to applications, the coarseness of rating patterns and the sellers' dynamic certification strategies.
Notes: "October 2008"--Publisher's web site.

Includes bibliographical references.