certifier can enable the seller to disclose her private information publicly, as well as gather additional market information …-maximal information-gathering. Thus, optimal contracts eliminate private information but not market uncertainty; even though the latter … would be costless, it is suboptimal as it requires excessive information rents to the seller. Thus, market inefficiencies …

We analyze both theoretically and empirically how monetary incentives and information about others’ behavior affect … increase their payoff. We vary both the size of the payoff (Low, High, and Very High) and the amount of information about … others’ dishonesty (With and Without Information). We first find that dishonesty falls in the Very High treatment. Second …