Huck, Steffen; Lünser, Gabriele K.; Tyran, Jean-Robert - 2006
We study the effects of reputation and competition in a stylized market for experience goods. If interaction is … identifiable and can, hence, build a reputation, efficiency quadruples but is still at only a third of the first best. Adding more … information by granting buyers access to all sellers' complete history has, somewhat surprisingly, no effect. On the other hand …