Alger, Ingela; Salanié, François - In: Journal of Economics & Management Strategy 15 (2006) 4, pp. 853-881
"Consumers often rely on an expert's diagnosis to assess their needs. If the expert is also the seller of services, he may use his informational advantage to induce overtreatment, which is a pervasive phenomenon in experts markets. We offer and discuss conditions leading to equilibrium...