The paper analyzes how entry of a new rating agency changes the information content of ratings. In the first part of the paper we build a model to analyze the optimal disclosure policy of a monopoly rating agency depending on the value of information to the buyers, and then describe the...

The paper analyzes how entry of a new rating agency changes the information content of ratings. In the first part of the paper we build a model to analyze the optimal disclosure policy of a monopoly rating agency depending on the value of information to the buyers. Then we describe the potential...