provide higher quality services to all consumers. The externality renders the market outcome inefficient. Price regulation …, price regulation should be accompanied by licensing arrangements that cap the number of experts in the market. Our theory … provides a novel rationale for the wide-spread use of price regulation and licensing in real-world markets for expert services. …

-functioning marketplaces depend on the vibrant flow of accurate reputational information, and how misdirected regulation of reputational … information could harm marketplace mechanisms. It then explores some challenges created by the existing regulation of reputational …