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Evidence on behavior of experts in credence goods markets raises an important causality issue: Do ”fair prices” induce ”good behavior”, or do ”good experts” post ”fair prices”? To answer this question we propose and test a model with three seller types: ”the good” choose fair...
Persistent link: https://www.econbiz.de/10010617818
This article studies the use of different distribution channels as an instrument of price discrimination in credence goods markets. In credence goods markets, where consumers do not know which quality of the good or service they need, price discrimination proceeds along the dimension of quality...
Persistent link: https://www.econbiz.de/10005273087
The existing literature in expert-customer relationship concludes that when: i) consumers are homogenous, ii) consumers … are committed with an an expert once this one made a recommendation, and iii) the type of treatment provided is verifiable …, an expert finds optimal to serve efficiently his customers. This work shows that the previous result may not occur when …
Persistent link: https://www.econbiz.de/10008642406
We experimentally investigate the strategic interaction between a product expert and a consumer. The expert privately … resulting ranking report to guide her product choice. The expert cares only about selling the report; the consumer derives … utility from the product itself and an extra ranking attribute controlled by the expert. In equilibrium, the expert chooses …
Persistent link: https://www.econbiz.de/10013238861
We propose a structural empirical approach à la Levinsohn and Petrin (2003) to disentangle the effect of experts' grades from the effect of unobserved quality on the pricing of experience goods. Using a panel data set of 108 châteaux selling wine on the Bordeaux "en primeur" market, we provide...
Persistent link: https://www.econbiz.de/10005773015
Credence goods markets suffer from inefficiencies arising from informational asymmetries between expert sellers and …
Persistent link: https://www.econbiz.de/10003931304
Credence goods markets suffer from inefficiencies arising from informational asymmetries between expert sellers and …
Persistent link: https://www.econbiz.de/10013153013
Credence goods markets suffer from inefficiencies arising from informational asymmetries between expert sellers and …
Persistent link: https://www.econbiz.de/10009736635
field experiment in the market for computer repairs. We find that revealing a second opinion from another expert to the …
Persistent link: https://www.econbiz.de/10012269649
Persistent link: https://www.econbiz.de/10008657628