Huck, Steffen; Lünser, Gabriele; Spitzer, Florian; … - 2016 - October 2014 (revised June 2016)
In a laboratory experiment designed to capture key aspects of the interaction between physicians and patients, we study … physicians' market shares. Medical treatment is an example of a credence good: only the physician knows the appropriate treatment … whether he was perhaps overtreated. We find that with insurance, moral hazard looms on both sides of the market: patients …