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

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 …