, 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 …

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 …

the market structure and institutional environment (separation of diagnosis and treatment, liability, verifiability …, reputational concerns, competition between experts and second opinions). We also describe recent developments in this area of …

When experts have superior information on their customers' needs and appropriate treatment/repair/advice is a credence … good, there are obvious incentives for opportunistic behavior. What compounds this is that experts regularly make treatment …