We investigate a market in which experts have a moral hazard problem because they need to invest in costly but … unobservable effort to identify consumer problems. Experts have either high or low qualification and can invest either high or low … effort in their diagnosis. High skilled experts are able to identify problems with some probability even with low effort …

performing agent must beat the second best to receive the winner prize. We analyze a tournament with two risk averse agents …

inefficiencies, such as under- and overtreatment or market break-down. We study in a large experiment with 936 participants the … determinants for efficiency in credence goods markets. While theory predicts that either liability or verifiability yields … higher efficiency as long as liability is violated. -- credence goods ; experiment ; liability ; verifiability ; reputation …