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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 …

Persistent link: https://www.econbiz.de/10010294825

The Economics of Credence Goods: On the Role of Liability, Verifiability, Reputation and Competition

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

determinants for efficiency in credence goods markets. While theory predicts that either liability or verifiability yields … efficiency, we find that liability has a crucial, but verifiability only a minor effect. Allowing sellers to build up reputation …

Persistent link: https://www.econbiz.de/10010294835

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/10010312241

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/10012269649

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/10013468203

Inequality Aversion and Voting on Redistribution

Höchtl, Wolfgang; Sausgruber, Rupert; Tyran, Jean-Robert - 2011

Some people have a concern for a fair distribution of incomes while others do not. Does such a concern matter for majority voting on redistribution? Fairness preferences are relevant for redistribution outcomes only if fair-minded voters are pivotal. Pivotality, in turn, depends on the structure...

Persistent link: https://www.econbiz.de/10010294833

Fairness preferences in a bilateral trade experiment

Ciccone, Alice; Rogeberg, Ole; Braaten, Ragnhild Haugli - In: Games 11 (2020) 1, pp. 1-17

Is the willingness to make trades influenced by how the total gains from trade are split between the trading partners? We present results from a bilateral trade game (n = 128) where all participants were price-takers and trading pairs faced one of three exogenously imposed trading prices. The...

Persistent link: https://www.econbiz.de/10012227801

Fairness preferences in a bilateral trade experiment

Ciccone, Alice; Rogeberg, Ole; Braaten, Ragnhild Haugli - In: Games 11 (2020) 1/8, pp. 1-17

Persistent link: https://www.econbiz.de/10012168600

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

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