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The hidden costs of tax evasion : collaborative tax evasion in markets for expert services

Balafoutas, Loukas; Beck, Adrian; Kerschbamer, Rudolf; … - 2015

We experimentally examine the impact of tax evasion attempts on the performance of credence goods markets, where contractual incompleteness results from asymmetric information on the welfare maximizing quality of the good. Our results suggest that tax evasion attempts - independently of whether...

Persistent link: https://www.econbiz.de/10010529409

Reveal it or conceal it: on the value of second opinions in a low-entry-barriers credence goods market

Bindra, Parampreet Christopher; Kerschbamer, Rudolf; … - 2020

Credence goods markets with their asymmetric information between buyers and sellers are prone to large inefficiencies. In theory, poorly informed consumers can protect themselves from maltreatment through sellers by asking for second opinions from other sellers. Yet, empirical evidence whether...

Persistent link: https://www.econbiz.de/10012236955

The impact of distributional preferences on (experimental) markets for expert services

Kerschbamer, Rudolf; Sutter, Matthias; Dulleck, Uwe - 2009

, verifiability fails to yield efficiency in experiments with endogenous prices. We identify heterogeneous distributional preferences … as the main cause and design a parsimonious experiment with exogenous prices that allows classifying experts as either … institutional design and agent selection in credence goods markets. -- Distributional preferences ; credence goods ; verifiability …

Persistent link: https://www.econbiz.de/10003931304

Guilt from promise-breaking and trust in markets for expert services : theory and experiment

Beck, Adrian; Kerschbamer, Rudolf; Qiu, Jianying; … - 2010

to a consumer first, whereupon the consumer can express her trust by paying an interaction price before the expert’s … provision and charging decisions. We argue that the expert’s promise induces a commitment that triggers guilt if the promise is … experts make the predicted promise; (2) proper promises induce consumer-friendly behavior; and (3) higher interaction prices …

Persistent link: https://www.econbiz.de/10003944278

The good, the bad and the naive : do fair prices signal good types or do they induce good behaviour?

Dulleck, Uwe; Johnston, David; Kerschbamer, Rudolf; … - 2012

Evidence on behavior of experts in credence goods markets raises an important causality issue: Do "fair prices" induce … "good behavior", or do "good experts" post "fair prices"? To answer this question we propose and test a model with three … selection and fixed effects regressions support the model's predictions and show that causality goes from good experts to fair …

Persistent link: https://www.econbiz.de/10009536497

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/10010207314

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/10011985996

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/10012313962

Reputation vs selection effects in markets with informational asymmetries

Alysandratos, Theodore; Geōrganas, Sōtērēs; Sutter, … - 2022

In markets with asymmetric information between sellers and buyers, feedback mechanisms are important to increase market efficiency and reduce the informational disadvantage of buyers. Feedback mechanisms might work because of self-selection of more trustworthy sellers into markets with such...

Persistent link: https://www.econbiz.de/10013448173

Stated and revealed inequality aversion in three subject pools

Beranek, Benjamin; Cubitt, Robin P.; Gächter, Simon - 2015

This paper reports data from three subject pools (n=717 subjects) using techniques based on those of Loewenstein, et al. (1989) and Blanco, et al. (2011) to obtain parameters, respectively, of stated and revealed inequality aversion. We provide a replication opportunity for those papers, with...

Persistent link: https://www.econbiz.de/10010502679