Similar Search Results

Pro Bono Work and Trust in Expert Fields

Ong, David; Yang, Chun-Lei - 2014

aspect of the services of experts (e.g., of doctors, lawyers, and accountants), and the role that voluntary pro bono work … might play. Expert services have un- verifiable quality to non-experts and are subject to moral hazard. Experts who cheat … their customers should crowd out experts who do not, resulting in low trust, prestige, and wages. We ask how pro bono work …

Persistent link: https://www.econbiz.de/10010398637

Salience and Online Sales: The Role of Brand Image Concerns

Dertwinkel-Kalt, Markus; Köster, Mats - 2017

We provide a novel intuition for the observation that many brand manufacturers have restricted their retailers’ ability to resell brand products online. Our approach builds on models of salience according to which price disparities across distribution channels guide a consumer’s attention...

Persistent link: https://www.econbiz.de/10011794126

Second-Degree Moral Hazard in a Real-World Credence Goods Market

Balafoutas, Loukas; Kerschbamer, Rudolf; Sutter, Matthias - 2013

Empirical literature on moral hazard focuses exclusively on the direct impact of asymmetric information on market outcomes, thus ignoring possible repercussions. We present a field experiment in which we consider a phenomenon that we call second-degree moral hazard - the tendency of the supply...

Persistent link: https://www.econbiz.de/10010328769

What drives taxi drivers? A field experiment on fraud in a market for credence goods

Balafoutas, Loukas; Beck, Adrian; Kerschbamer, Rudolf; … - 2011

Credence goods are characterized by informational asymmetries between sellers and consumers that invite fraudulent behavior by sellers. This paper presents the results of a natural field experiment on taxi rides in Athens, Greece, set up to measure different types of fraud and to examine the...

Persistent link: https://www.econbiz.de/10010274989

Credence Goods Markets and the Informational Value of New Media: A Natural Field Experiment

Kerschbamer, Rudolf; Neururer, Daniel; Sutter, Matthias - 2019

Credence goods markets are characterized by pronounced informational asymmetries between consumers and expert sellers. As a consequence, consumers are often exploited and market efficiency is threatened. However, in the digital age, it has become easy and cheap for consumers to self-diagnose...

Persistent link: https://www.econbiz.de/10012179731

Diagnostic Uncertainty and Insurance Coverage in Credence Goods Markets

Balafoutas, Loukas; Fornwagner, Helena; Kerschbamer, Rudolf - 2020

also uncover an important interaction effect: if consumers are insured, experts invest less in diagnostic precision. We …

Persistent link: https://www.econbiz.de/10012425587

Contesting Fake News

Rehsmann, Daniel; Roussillon, Béatrice; Schweinzer, Paul - 2023

We model competition on a credence market governed by an imperfect label, signaling high quality, as a rank-order tournament between firms. In this market interaction, asymmetric firms jointly and competitively control the underlying quality ranking's precision by releasing individual...

Persistent link: https://www.econbiz.de/10014377606

The International Organization of Production in the Regulatory Void

Herkenhoff, Philipp; Krautheim, Sebastian - 2018

Over the last decades, the internationalization of the value chain has allowed firms to exploit cross-country differences in environmental and labor regulation (and enforcement) in ways that have led to a large number of NGO campaigns and consumer boycotts criticizing ‘unethical’ practices....

Persistent link: https://www.econbiz.de/10011815815

Insurance in a Market for Credence Goods

Sülzle, Kai; Wambach, Achim - 2002

goods, where prices are regulated by an authority, physicians act as experts. Due to their informational advantage …

Persistent link: https://www.econbiz.de/10010315371

Expert politicians, electoral control, and fiscal restraints

Dulleck, Uwe; Wigger, Berthold U. - 2012

Fiscal restraints have been argued to force today's governments to internalize the externalities that result from extensive borrowing on future electorates and governments as well as on other countries by causing fiscal instability. In this article we provide an alternative argument for fiscal...

Persistent link: https://www.econbiz.de/10010280846