such markets, insurance on the customer side, interacts with the degree of diagnostic uncertainty. We present a model that … analyzes the effects of both diagnostic uncertainty and insurance in a unified framework and we test the model's predictions in … lab experiments. Both in theory and in the experiment diagnostic uncertainty increases the rate of incorrect service …

is a common problem. Our model studies how four common features shape experts' provision behavior in credence goods …

, where contractual incompleteness results from asymmetric information on the welfare maximizing quality of the good. We find …

inefficiencies, such as under- and overtreatment or market break-down. We study in a large experiment with 936 participants the … higher efficiency as long as liability is violated. -- credence goods ; experiment ; liability ; verifiability ; reputation …

broken, and guilt is exacerbated by higher interaction prices. An experiment qualitatively confirms our predictions: (1) most …

as the main cause and design a parsimonious experiment with exogenous prices that allows classifying experts as either … ; experiment …

learned in their professional training. -- artefactual field experiment ; car mechanics ; credence goods …