In a laboratory experiment designed to capture key aspects of the interaction between physicians and patients, we study … physicians' market shares. Medical treatment is an example of a credence good: only the physician knows the appropriate treatment … consult more often and physicians overtreat more often than in the baseline condition. Competition decreases overtreatment …

In a laboratory experiment designed to capture key aspects of the interaction between physicians and patients in a … physicians overtreat more often than in the baseline condition. Competition decreases overtreatment compared to the baseline and …

Unfavorable news are often delivered under the disguise of vagueness. Our theory-driven laboratory experiment … precision are not obvious. However, our model and experiment show that information transmission and the welfare of naive …