Balafoutas, Loukas; Fornwagner, Helena; Kerschbamer, Rudolf - 2023 - This version: 29 September 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 …