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We study contracting between a consumer and an expert. The expert can invest in diagnosis to obtain a noisy signal … success or failure of the low-cost treatment is observed only by the consumer. Payments can therefore not depend on the …
Persistent link: https://www.econbiz.de/10010429934
We study contracting between a consumer and an expert. The expert can invest in diagnosis to obtain a noisy signal … about whether a low-cost service is sufficient or whether a high-cost treatment is required to solve the consumer's problem … success or failure of the low-cost treatment is observed only by the consumer. Payments can therefore not depend on the …
Persistent link: https://www.econbiz.de/10010436207