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...

This paper studies price competition between experts and discounters in a market for credence goods. While experts can identify a consumer’s problem by exerting costly but unobservable diagnosis effort, discounters just sell treatments without giving any advice. The unobservability of...

Die zunehmende Intensität des Preiswettbewerbs, die steigende Zahl der Geschäftsaufgaben und Marktaustritte vor allem kleinerer Unternehmen des Einzelhandels sowie die gegenwärtige Krise der KarstadtQuelle-Gruppe sind Anlass vielfältiger Diskussionen um die Zukunft des Einzelhandels, auch um...

Although mobile payments are increasingly used in some countries, they have not been adopted widely in the United States so far, despite their potential to add value for consumers and streamline the payments system. After describing a few countries' experiences, we analyze the prospects for the...