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Project Citation: 

Bederson, Benjamin B., Jin, Ginger Zhe, Leslie, Phillip, Quinn, Alexander J., and Zou, Ben. Replication data for: Incomplete Disclosure: Evidence of Signaling and Countersignaling. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12.

Project Description

Summary:  View help for Summary In 2011, Maricopa County adopted voluntary restaurant hygiene grade cards (A, B, C, D). Using inspection results between 2007 and 2013, we show that only 58 percent of the subsequent inspections led to online grade posting. Although the disclosure rate in general declines with inspection outcome, higher-quality A restaurants are less likely to disclose than lower-quality As. After examining potential explanations, we believe the observed pattern is best explained by a mixture of signaling and countersignaling: the better A restaurants use nondisclosure as a countersignal, while worse As and better Bs use disclosure to stand out from the other restaurants.

Scope of Project

JEL Classification:  View help for JEL Classification
      D82 Asymmetric and Private Information; Mechanism Design
      H75 State and Local Government: Health; Education; Welfare; Public Pensions
      I18 Health: Government Policy; Regulation; Public Health
      L15 Information and Product Quality; Standardization and Compatibility
      L83 Sports; Gambling; Restaurants; Recreation; Tourism
      L88 Industry Studies: Services: Government Policy

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