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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

Gender differences in financial advice

Bucher-Koenen, Tabea; Hackethal, Andreas; Koenen, Johannes - 2021

We show that ﬁnancial advisors recommend more costly products to female clients, based on minutes from about 27,000 real-world advisory meetings and client portfolio data. Funds recom-mended to women have higher expense ratios controlling for risk, and women less often receive rebates on...

Persistent link: https://www.econbiz.de/10012517025

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

Diagnostic uncertainty and insurance coverage in credence goods markets

Balafoutas, Loukas; Fornwagner, Helena; Kerschbamer, Rudolf - 2020 - This version: 5 November 2020

also uncover an important interaction effect: if consumers are insured, experts invest less in diagnostic precision. We …

Persistent link: https://www.econbiz.de/10012310862

Diagnostic uncertainty and insurance coverage in credence goods markets

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 …

Persistent link: https://www.econbiz.de/10014382483

Serving consumers in an uncertain world : a credence goods experiment

Balafoutas, Loukas; Fornwagner, Helena; Kerschbamer, Rudolf - 2023 - This version: 3 October 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/10014382489

Developing a framework for real-time trading in a laboratory financial market

Marner-Hausen, Mark - 2022 - This version: January 31, 2022

the complex financial market rules to non-experts. The present paper is part of an ongoing project with Peter Cramton …-time trading; to provide means for an adequate communication of complex financial market rules to non-experts; and to provide …

Persistent link: https://www.econbiz.de/10013257732

Concentration bias in intertemporal choice

Dertwinkel-Kalt, Markus; Gerhardt, Holger; Riener, Gerhard - 2021

Many intertemporal trade-offs are unbalanced: while the advantages of options are concen- trated in a few periods, the disadvantages are dispersed over numerous periods. We provide novel experimental evidence for “concentration bias”, the tendency to overweight advantages that are...

Persistent link: https://www.econbiz.de/10012499569