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erutoday at 10:33 AM2 repliesview on HN

I don't buy your list. For example, higher quality doesn't require third part certification. Reputation (and warranties) can work without third parties.

I do agree that third party certification is one possible avenue.


Replies

pknomadtoday at 10:49 AM

How so?

Any sort of profession that warrants high quality service requires certifications (bar exam, USMLE, PE, etc)

Same goes for products too. It’s not a reasonable solution for the consumers to perform an exhaustive research to get high quality guarantee.

I don’t find non official third party all that compelling. See Amazon marketplace as an example.

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Paul_Claytontoday at 11:54 AM

I think reputation and warranties are insufficient. While building a reputation may be expensive, destroying a reputation can be profitable (in the short term). Warranties can also be made less effective by making the buyer spend excessive time and effort to enforce the warranty. The company sets the terms and effectively their interpretation, so after two years of waiting, nudging, waiting, complaining, waiting, threatening, and waiting one finally gets an "equivalent value" replacement (and the warranty clock was running during that time).

The company might also go bankrupt with much of its profits having gone to owners and decision makers who are not bound to honor the warranty.