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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

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

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

Bubble or no Bubble - The Impact of Market Model on the Formation of Price Bubbles in Experimental Asset Markets

Kirchler, Michael; Huber, Jürgen; Stöckl, Thomas - 2009

For the past two decades a market model introduced by Smith, Suchanek, and Williams (1988, henceforth SSW) has dominated experimental research on financial markets. In SSW the fundamental value of the traded asset is determined by the expected value of a finite stream of dividend payments. This...

Persistent link: https://www.econbiz.de/10010294788

Thar she bursts - Reducing confusion reduces bubbles

Kirchler, Michael; Huber, Jürgen; Stöckl, Thomas - 2011

To explore why bubbles frequently emerge in the experimental asset market model of Smith, Suchanek and Williams (1988), we vary the fundamental value process (constant or declining) and the cash-to-asset value-ratio (constant or increasing). We observe high mispricing in treatments with a...

Persistent link: https://www.econbiz.de/10010294824