framework. We test the model's predictions in a laboratory experiment. Both in theory and in the experiment diagnostic … net effect on welfare. In the experiment, the net effect of insurance coverage on efficiency turns out to be positive. We … and customers are prone to fraudulent behavior of sellers and resulting market inefficiencies. We present the first model …

contractual incompleteness results from asymmetric information on the welfare maximizing quality of the good. Our results suggest … too low quality and less frequent trade. Thus, shadow economies may reduce welfare not only by inducing agents to incur …

as the main cause and design a parsimonious experiment with exogenous prices that allows classifying experts as either … ; experiment …

broken, and guilt is exacerbated by higher interaction prices. An experiment qualitatively confirms our predictions: (1) most …

inefficiencies, such as under- and overtreatment or market break-down. We study in a large experiment with 936 participants the … higher efficiency as long as liability is violated. -- Credence goods ; experiment ; liability ; verifiability ; reputation …

rather than weakness. We test and confirm Schelling's conjecture in a simple take-it-or-leave bargaining experiment where the …. -- strategic ignorance ; bargaining ; intentions ; experiment …

-in-the-field experiment, male producers allocate too few inputs to their wife's plot, failing to maximize household aggregate profits. They do …

"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 … prices. -- credence goods ; experts ; pricing ; experiment ; other regarding preferences ; signalling ; projection bias …

outcomes, thus ignoring possible repercussions. We present a field experiment in which we consider a phenomenon that we call …

' reviews on social media platforms in search for trustworthy sellers. We present a natural field experiment that examines the …