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Second-degree moral hazard in a real-world credence goods market
Balafoutas, Loukas; Kerschbamer, Rudolf; Sutter, Matthias - 2013 - This version: 16 October 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/10010199693
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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/10012312079
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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/10010294777
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Credence goods in the literature: What the past fifteen years have taught us about fraud, incentives, and the role of institutions
Balafoutas, Loukas; Kerschbamer, Rudolf - 2020
the market structure and institutional environment (separation of diagnosis and treatment, liability, verifiability …, reputational concerns, competition between experts and second opinions). We also describe recent developments in this area of …
Persistent link: https://www.econbiz.de/10012609010
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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/10012609030
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Diagnostic uncertainty and insurance coverage in credence goods markets
Balafoutas, Loukas; Fornwagner, Helena; Kerschbamer, Rudolf - 2023
In markets for credence goods - such as health care or repair services - fraudulent behavior by better informed experts … is a common problem. Our model studies how four common features shape experts' provision behavior in credence goods … markets: (i) diagnostic uncertainty of experts; (ii) insurance coverage of consumers; (iii) malpractice payments for treatment …
Persistent link: https://www.econbiz.de/10014476274
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Serving consumers in an uncertain world: A credence goods experiment
Balafoutas, Loukas; Fornwagner, Helena; Kerschbamer, Rudolf - 2023
Credence goods markets are prone to fraudulent behavior and market inefficiencies due to informational asymmetries between sellers and customers. We examine experimentally the effects of diagnostic uncertainty and insurance coverage on the information acquisition and provision decisions by...
Persistent link: https://www.econbiz.de/10014476303
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The hidden costs of tax evasion: Collaborative tax evasion in markets for expert services
Balafoutas, Loukas; Beck, Adrian; Kerschbamer, Rudolf; … - 2014
In markets where transactions are governed by contractual incompleteness, revealed intentions to evade taxes may affect market performance. We experimentally examine the impact of tax evasion attempts on the performance of credence goods markets, where contractual incompleteness results from...
Persistent link: https://www.econbiz.de/10010397185
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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/10010397186
Cover Image
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/10009127565