Standardized grading certificates lowered barriers to entry and increased competition.

Evidence

In contrast, when dealers value a polished stone differently, most of that difference will be due to their differing estimates of market demand and to their differential skill in detecting flaws in stones. In recent years, however, the skill factor has become less important. Although older dealers continue to maintain that even polished diamonds cannot be objectively graded and valued, in the late 1970s, the Gemological Institute of America began to issue diamond grading certificates whose widespread use made it possible for dealers with little gem expertise to enter the market, resulting in increased competition. By creating standardized ways of describing polished stones, grading certificates have facilitated the flow of price information. — Lisa Bernestein, Opting out of the Legal System, 28

Categorization

• XREF: Parallel to how standardizing information (ratings, certificates, price transparency) breaks incumbent gatekeepers — echoes Coleman network-closure dynamics where information monopolies sustain closure. — connects to: Standardized diamond grading reduced skill barriers and boosted market competition.

Broader Connections

• Standardized diamond grading reduced skill barriers and boosted market competition. #corroborates (1.00)