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How does competition affect reputation concerns? : theory and evidence from Airbnb

Rossi, Michelangelo - 2019

I show how changes in competition affect the power of reputation to induce sellers to exert effort. The impact of …. To guide the empirical analysis, I develop a model of reputation where the relative number of hosts and guests affects … the value of building a reputation through effort. In this framework, more competition depresses hosts' profits and leads …

Persistent link: https://www.econbiz.de/10012138911

Second-degree moral hazard in a real-world credence goods market

Balafoutas, Loukas; Kerschbamer, Rudolf; Sutter, Matthias - 2013 - This version: 16 October 2013

Empirical literature on moral hazard focuses exclusively on the direct impact of asymmetric information on market outcomes, thus ignoring possible repercussions. We present a field experiment in which we consider a phenomenon that we call second-degree moral hazard – the tendency of the supply...

Persistent link: https://www.econbiz.de/10010199693

Selling reputation when going out of business : presented at CEFifo Area Conference on Industrial Organisation, March 2004

Hakenes, Hendrik; Peitz, Martin - CESifo Area Conference on Industrial Organisation … - 2004

Is the reputation of a firm tradeable when the previous owner has to retire even though ownership change is observable … good type. Hence reputation is tradeable, although ownership change is observable. In our model, reputation is an …

Persistent link: https://www.econbiz.de/10011449475

Credence goods markets and the informational value of new media : a natural field experiment

Kerschbamer, Rudolf; Neururer, Daniel; Sutter, Matthias - 2019

Credence goods markets are characterized by pronounced informational asymmetries between consumers and expert sellers. As a consequence, consumers are often exploited and market efficiency is threatened. However, in the digital age, it has become easy and cheap for consumers to self-diagnose...

Persistent link: https://www.econbiz.de/10012120255

What drives taxi drivers? : a field experiment on fraud in a market for credence goods

Balafoutas, Loukas; Beck, Adrian; Kerschbamer, Rudolf; … - 2011

Credence goods are characterized by informational asymmetries between sellers and consumers that invite fraudulent behavior by sellers. This paper presents the results of a natural field experiment on taxi rides in Athens, Greece, set up to measure different types of fraud and to examine the...

Persistent link: https://www.econbiz.de/10009127565

Income tax buyouts and income tax evasion

Goerke, Laszlo - 2014

A tax buyout is a contract between tax authorities and a tax payer which reduces the marginal income tax rate in exchange for a lump-sum payment. While previous contributions have focussed on labour supply, we consider the interaction with tax evasion and show that a buyout can increase expected...

Persistent link: https://www.econbiz.de/10010237195

Corporate taxation and financial strategies under asymmetric information

Cohen, Francesco; Fedele, Alessandro; Panteghini, Paolo - 2014

In this article we study the corporate tax effects on credit market equilibria. In particular, we develop a model that accounts for five pieces of evidence: i) the existence of a tax incentive to borrow, ii) the negative relationship between leverage and profitability, iii) the existence of...

Persistent link: https://www.econbiz.de/10010347029

Vertical product differentiation when quality is unobservable to buyers : presented at CESifo Area Conference on Industrial Organisation, March 2003

Orosel, Gerhard O.; Zauner, Klaus G. - 2004

We analyze vertical product differentiation in a model where a good's quality is unobservable to buyers before purchase, a continuum of quality levels is technologically feasible, and minimum quality is supplied under competitive conditions. After purchase the true quality of the good is...

Persistent link: https://www.econbiz.de/10011450700

Optimal design of intergovernmental grants under asymmetric information

Huber, Bernd; Runkel, Marco - 2003

This paper develops a theoretical explanation why it may be optimal for higher-level governments to pay categorical block grants or closed-ended matching grants to local governments. We consider a federation with two types of local governments which differ in the cost of providing public goods....

Persistent link: https://www.econbiz.de/10011507744

Regulatory arbitrage and the efficiency of banking regulation

Boyer, Pierre C.; Kempf, Hubert - 2016

We study the efficiency of banking regulation under financial integration. Banks freely choose the jurisdiction where to locate their activities and have private information about their efficiency level. Regulators non-cooperatively offer any regulatory contract that satisfies information and...

Persistent link: https://www.econbiz.de/10011458020