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Credence goods markets suffer from inefficiencies caused by superior information of sellers about the surplus …
Persistent link: https://www.econbiz.de/10010479932
the no-run outcome the unique equilibrium. We test if the theoretical predicitions hold in a lab experiment. We find that …
Persistent link: https://www.econbiz.de/10011450033
common knowledge and treatments where agents' types are private information. In all treatments, the (efficient) equilibrium …
Persistent link: https://www.econbiz.de/10003115141
We examine behavior in a three-player trust game in which the first player may invest in the second and the second may invest in the third. Any amount sent from one player to the next is tripled. The third player decides the final allocation among three players. The baseline treatment with no...
Persistent link: https://www.econbiz.de/10013096059
Credence goods markets suffer from inefficiencies arising from informational asymmetries between expert sellers and customers. While standard theory predicts that inefficiencies disappear if customers can verify the quality received, verifiability fails to yield efficiency in experiments with...
Persistent link: https://www.econbiz.de/10013153013
credibly deter unprofitable entry without having to distort their prices away from their full information levels. Yet, in a … large number of cases, asymmetric information induces incumbents to raise prices when costs are low. The results also show …
Persistent link: https://www.econbiz.de/10012733313
Credence goods markets are characterized by asymmetric information between sellers and consumers that may give rise to …
Persistent link: https://www.econbiz.de/10012764487
Credence goods markets are characterized by asymmetric information between sellers and consumers that may give rise to …
Persistent link: https://www.econbiz.de/10012764586
The paper reports results from an Ultimatum Game experiment with asymmetric information where Proposers can send to … Responders misleading information about their endowment. We allow for all possible gender combinations in the Proposer …
Persistent link: https://www.econbiz.de/10013013163
We experimentally investigate the impact of visibility of contributors and cost of information on public good …, even when viewing contributors' information is costly. This effect holds even though the identities of contributors are …
Persistent link: https://www.econbiz.de/10013063986