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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

Guilt from Promise-Breaking and Trust in Markets for Expert Services - Theory and Experiment

Beck, Adrian; Kerschbamer, Rudolf; Qiu, Jianying; … - 2010

experts make the predicted promise; (2) proper promises induce consumer-friendly behavior; and (3) higher interaction prices …

Persistent link: https://www.econbiz.de/10010294816

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

How social preferences shape incentives in (experimental) markets for credence goods

Kerschbamer, Rudolf; Sutter, Matthias; Dulleck, Uwe - 2015

Credence goods markets suffer from inefficiencies caused by superior information of sellers about the surplus-maximizing quality. While standard theory predicts that equal mark-up prices solve the credence goods problem if customers can verify the quality received, experimental evidence...

Persistent link: https://www.econbiz.de/10011382731

What drives taxi drivers? A field experiment on fraud in a market for credence goods

Balafoutas, Loukas; Beck, Adrian; Kerschbamer, Rudolf; … - 2011

Credence goods are characterized by informational asymmetries between sellers and consumers that invite fraudulent behavior by sellers. This paper presents the results of a natural field experiment on taxi rides in Athens, Greece, set up to measure different types of fraud and to examine the...

Persistent link: https://www.econbiz.de/10010294777

Car Mechanics in the Lab - Investigating the Behavior of Real Experts on Experimental Markets for Credence Goods

Beck, Adrian; Kerschbamer, Rudolf; Qiu, Jianying; … - 2009

We compare the behavior of car mechanics and college students as sellers in experimental credence goods markets. Finding largely similar behavior, we note much more overtreatment by car mechanics, probably due to decision heuristics they learned in their professional training.

Persistent link: https://www.econbiz.de/10010294779

Credence goods markets and the informational value of new media: A natural field experiment

Kerschbamer, Rudolf; Neururer, Daniel; Sutter, Matthias - 2019

Credence goods markets are characterized by pronounced informational asymmetries between consumers and expert sellers. As a consequence, consumers are often exploited and market efficiency is threatened. However, in the digital age, it has become easy and cheap for consumers to self-diagnose...

Persistent link: https://www.econbiz.de/10012140878

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/10012609018

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