Can consumers detect lemons? An empirical analysis of information asymmetry in the market for child care

Mocan, Naci

doi:10.1007/s00148-006-0087-6

Cited by 122 publications

(128 citation statements)

References 25 publications

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“…La racionalidad infantil fue estudiada por Mocan (2007), su análisis se sustenta desde la perspectiva de la asimetría existente entre la cantidad de información brindada a un mercado y la racionalidad utilizada por un consumidor en la toma de decisiones. El autor establece que durante la compra no se utiliza el total de la información disponible, sino que en ocasiones se realiza una selección adversa por parte de los consumidores.…”

Section: Elemento De Intercambio: El Preciounclassified

Consumo de productos infantiles en la base de la pirámide poblacional: análisis de los mecanismos influyentes

Gómez

Pérez

2017

Econcuc

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The present Work is aimed to illustrate the base of the population pyramid as one of the largest markets in the world, therefore, it becomes an opportunity to transform poverty into a part of the solution by designing products that fulfil the needs and aspirations of the members of the mentioned segment of the society. Therefore, the objective of identifying the influential mechanisms related to making consumption decisions in children over 5 and 9 years of age at the base of the pyramid in Villavicencio, Colombia, was defined. With regard to the research methodology a qualitative method as well techniques of non-participant observation and in-depth interviews were used, the sample chosen in this research work were nine infant. The obtained results allowed to classify three groups of organized influencers. The first group was the macro influencers, there have existed not only similar peers but also the price of products; the second group was represented by the moderate influencers, these ones have been related to the brands designed for this segment, the third group was the minor influencers which were supported by the parental control. Hence, taking into account the results of this work it can be said that schools and neighborhoods stores are the key purchase influencers to the consumption in children at the base of the pyramid.Keywords: market segmentation, children's products, infant consumer, base of the pyramid, brand influences. IntroducciónEl consumo es un fenómeno de los seres vivos que tiene diferentes análisis soportados en factores económicos, sociales y culturales. Desde las ciencias económicas este es visto como la etapa final del ciclo económico, definido como el momento en que un bien o servicio produce alguna utilidad al sujeto consumidor. A partir del concepto del marketing social, el consumo debe ser responsable a nivel social y ambiental, debe cubrir las necesidades actuales de la oferta y la demanda, pero que al mismo tiempo conserve o mejore la capacidad de generaciones futuras para cubrir sus necesidades (Kotler & Armstrong, 2012, p. 11).La nueva generación infantil del siglo XXI, es única en la historia, pues los niños han estado conectados al mundo digital desde temprana edad debido a la penetración de la tecnolo-

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Section: Elemento De Intercambio: El Preciounclassified

Consumo de productos infantiles en la base de la pirámide poblacional: análisis de los mecanismos influyentes

Gómez

Pérez

2017

Econcuc

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“…In recent years this question has been subject to great interest and debate, but controversy remains. Advocates of regulation have emphasized the importance of ensuring adequate standards of quality and safety, so as to preclude negative public externalities arising from low-quality services and address imperfect parental ability to assess or monitor the quality of care (e.g., Walker, 1991;Mocan, 2007). It has also been noted, however, that the regulation of child care inputs may have unintended impacts on the supply of market-based services.…”

Section: Minimum Quality Standardsmentioning

confidence: 99%

Entry and Quality Choices in Child Care Markets

Bastos

Cristia

2010

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractMany developing countries have adopted the market approach for expanding the supply of child care, but little is known about the economic behavior of independent providers. This paper draws on uniquely rich administrative data on child care centers and their inputs from São Paulo to examine the role of local household income in shaping the entry and quality choices of private suppliers. It documents three main facts: (1) entry rates are considerably higher in high-income districts; (2) the quality of provision-as measured by teachers' schooling, group size and equipment-is highly heterogeneous across space and increases systematically with local household income; and (3) a considerable share of centers operates below recommended (but not regulated) quality standards, especially in low-income districts. These ndings accord with a model in which heterogeneous providers optimally adjust the quality of care to the willingness to pay for quality of local consumers. Market-driven heterogeneity in the quality of provision across space is a key consideration for understanding the effect of regulations on the supply of child care.JEL Classi cations: D12, I21, I28, L21, L26, L51, O15 Keywords: Child care markets, Entry, Product quality, Minimum quality standards Acknowledgments We would like to thank, without implicating, Eric Verhoogen for very helpful comments on an earlier draft. We are also grateful to Joseph Hotz for graciously sharing with us the data on U.S. regulations and Lidia Ferraz from INEP for help with the Brazilian microdata. The views expressed in this paper are exclusively those of the authors and not those of the Inter-American Development Bank.

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“…The availability of different childcare options, their quality and their price are major determinants of the work-family balance of households with (young) children. Moreover, the market of childcare services is prone to information asymmetry because parents are only indirect consumers of the service (Mocan 2007). Consequently, in many countries quality standards have been imposed and non-profit institutions have established an important role in the provision of childcare services because of the trust they engender.…”

Section: Introductionmentioning

confidence: 99%

Maternal employment: the impact of triple rationing in childcare

et al. 2014

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This paper analyses how maternal labor supply relates to the availability of childcare services in Flanders, a region that has a fairly abundant service provision, but does not offer a service guarantee as in several Nordic countries. Variation in price/quantity bundles that stems from the interplay of three types of childcare services are used to identify mothers' labor supply responses. The estimates indicate that policy measures which increase the availability may exhibit large labor supply effects. Moreover, budgetary simulations suggest the expansion of subsidised care services to be beneficial to the exchequer.Electronic supplementary material The online version of this article

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Can consumers detect lemons? An empirical analysis of information asymmetry in the market for child care

Abstract: Rationality, Child care, Adverse selection, D2, L3, J13,

Cited by 122 publications

References 25 publications

Consumo de productos infantiles en la base de la pirámide poblacional: análisis de los mecanismos influyentes

Consumo de productos infantiles en la base de la pirámide poblacional: análisis de los mecanismos influyentes

Entry and Quality Choices in Child Care Markets

Maternal employment: the impact of triple rationing in childcare

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