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Harvard Study Finds Consumers Don’t Care if Businesses Are Licensed, but Do Consider Customer...

"Our results show that more stringent licensing regulations are associated with less competition and higher prices but not with any improvement in customer satisfaction," researchers from MIT,...

8:50 PM · Apr 1, 2020

Replying to

disclaimer: i haven't dug in to see if their claims hold up

12

Replying to

@senatorshoshana

Duh.....

1

Replying to

Just scanned it briefly but it was only hiring choice?

Replying to

Most people don't understand what the pros and cons of licensing are but they can read and understand reviews. This is more a reflection of ignorance of standards than of opposition to licenses. That said there are definitely issues with license laws that need addressing.

3

Brian Bi believes borders should be open

Replying to

Could this be explained by the fact that average consumers simply unconsciously assume that the govt has already created a "safe society" by enforcing licensing requirements for potentially "dangerous" occupations? And therefore they don't feel the need to check?

Bruno Vitorio Santos

@brunovitsantos

Replying to

Average price increase: 4% Bad case: 9,3% price increase Inferred average loss of competition: 2% I can totally see not needing a certificate for harmless work (such as home decorator). Even then, these effects seem quite small.