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Actors in various settings have been increasingly relying on algorithmic tools to support their decision-making. Much of the public debate concerning algorithms - especially the associated regulation of new technologies - rests on the assumption that humans can assess the quality of algorithms....
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the good they actually need. Therefore, sellers act as experts determining the customers' requirements. This information …
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that the equilibrium behaviour of experts and consumers in credence goods markets sensitively depends on the details of the …
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experts make the predicted promise; (2) proper promises induce consumer-friendly behavior; and (3) higher interaction prices …
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We experimentally investigate the role of second opinions in markets where experts like doctors both diagnose and … provide the services. Experts may exploit their informational advantage over customers and overtreat by providing a more …
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to a consumer first, whereupon the consumer can express her trust by paying an interaction price before the expert’s … provision and charging decisions. We argue that the expert’s promise induces a commitment that triggers guilt if the promise is … experts make the predicted promise; (2) proper promises induce consumer-friendly behavior; and (3) higher interaction prices …
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