This paper studies the incentives for credence goods experts to invest effort in diagnosis if effort is both costly and unobservable, and if they face competition by discounters who are not able to perform a diagnosis. The unobservability of diagnosis effort and the credence characteristic of...

In the paper the author analyses the contemporary issues of gaining competitive advantages (CAs) at the firm level. The basic purpose of the paper is to develop theoretical and empirical analysis of non-price (invisible, intangible, non-traditional) factors (sources) of firm competitiveness. In...