Balafoutas, Loukas; Fornwagner, Helena; Kerschbamer, Rudolf - 2020 - This version: 5 November 2020
lab experiments. Both in theory and in the experiment diagnostic uncertainty increases the rate of incorrect service … is known so far about how diagnostic uncertainty of sellers affects market outcomes, and how one widespread feature of … such markets, insurance on the customer side, interacts with the degree of diagnostic uncertainty. We present a model that …