This paper investigates the impact of four key economic variables on an expert firm’s incentive to defraud its … customers in a credence goods market: the level of competition, the expert firm’s financial situation, its competence, and its …

This paper investigates the impact of four key economic variables on an expert firm's incentive to defraud its … customers in a credence goods market: the level of competition, the expert firm's financial situation, its competence, and its …

This paper investigates the impact of four key economic variables on an expert firm's incentive to defraud its … customers in a credence goods market: the level of competition, the expert firm's financial situation, its competence, and its …

to defraud his customers when the expert can build up reputation. We show that the level of fraud is significantly higher … customers. As experts provide both diagnosis and treatment, this leaves scope for fraud. We experimentally investigate how … intensity of price competition and the level of customer information about past expert behavior influence an expert’s incentive …

markets, where the expert observes the intervention that a consumer needs to fix his problem and also provides a treatment … served under non-discrimination get the wrong procedure if the expert can discriminate among customers. …

yielding equilibria exhibiting various degrees of inefficiencies and fraud. The variety of results has fostered the impression …

asymmetric informationbecause expert sellers are better informed than their customers about the quality that yields the highest …