of prices is known to lead to a number of identi?cation problems. However, in this paper, we show that theory …

about whether a low-cost service is sufficient or whether a high-cost treatment is required to solve the consumerś problem … objective outcome but only the consumerś report, or subjective evaluation. A failure of the low-cost treatment delays the … solution of the consumerś problem by the high-cost treatment to a second period. We show that the first-best solution can …