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reciprocity and guilt appear to be the major drivers for generous voluntary payments. Being inclined to follow social norms is a …
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We examine the influence of guilt and trust on the performance of credence goods markets. An expert can make a promise …'s provision and charging decisions. We argue that the expert's promise induces a commitment that triggers guilt if the promise is … broken, and guilt is exacerbated by higher interaction prices. An experiment qualitatively confirms our predictions: (1) most …
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We examine the influence of guilt and trust on the performance of credence goods markets. An expert can make a promise …'s provision and charging decisions. We argue that the expert's promise induces a commitment that triggers guilt if the promise is … broken, and guilt is exacerbated by higher interaction prices. An experiment qualitatively confirms our predictions: (1) most …
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