In a laboratory experiment designed to capture key aspects of the interaction between physicians and patients in a stylized way, we study the effects of medical insurance and competition in the guise of free choice of physician. Medical treatment is an example of a credence good: only the...

In a multi-task, market-based promotion tournament model, under different environments concerning employer learning about worker ability, it is shown that:i) Asymmetric learning in multi-task jobs is a necessary condition for "strategic shirking" (i.e., underperforming on certain tasks to...

We provide a theoretical analysis of promotion tournaments in which workers 'strategically shirk' by purposely under-performing on tasks that are de-emphasized in a promotion rule, while over-performing in tasks that are emphasized in the rule, thereby increasing their chances of promotion and a...