The quality of manufactured goods, both directly, and in terms of perceived environmental or social costs involved in manufacturing are interesting issues of incomplete information. Two related papers that might be of interest to EC470 students thinking about paper topics:
A survey of the economic literature on Corporate Social Responsibility
Economic Perspectives on Corporate Social Responsibility by Markus Kitzmueller and Jay Shimshack
Paper available here through the Journal of Economic Literature (gated)
and a new paper by Krautheim and Verdier on credence goods and the role of NGO’s in international trade:
Paper available through the Center for Economic Policy Research