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Serving consumers in an uncertain world : a credence goods experiment

Balafoutas, Loukas; Fornwagner, Helena; Kerschbamer, Rudolf - 2023 - This version: 3 October 2023

Credence goods markets are prone to fraudulent behavior and market inefficiencies due to informational asymmetries between sellers and customers. We examine experimentally the effects of diagnostic uncertainty and insurance coverage on the information acquisition and provision decisions by...

Persistent link: https://www.econbiz.de/10014391609

Diagnostic uncertainty and insurance coverage in credence goods markets

Balafoutas, Loukas; Fornwagner, Helena; Kerschbamer, Rudolf - 2020 - This version: 5 November 2020

Credence goods markets - like for health care or repair services - with their informational asymmetries between sellers and customers are prone to fraudulent behavior of sellers and resulting market inefficiencies. We present the first model that considers both diagnostic uncertainty of sellers...

Persistent link: https://www.econbiz.de/10012311343

An Experimental Investigation of Alternatives to Expected Utility Using Pricing Data

Morone, Andrea; Schmidt, Ulrich - Institut für Volkswirtschaftslehre, … - 2006

Experimental research on decision making under risk has until now always employed choice data in order to evaluate the empirical performance of expected utility and the alternative nonexpected utility theories. The present paper performs a similar analysis which relies on pricing data instead of...

Persistent link: https://www.econbiz.de/10005082826

Homophily and transmission of behavioral traits in social networks

Bhargava, Palaash; Chen, Daniel L.; Sutter, Matthias; … - 2023

about how these traits are related to social networks. Based on unique data collected using incentivized experiments on more …

Persistent link: https://www.econbiz.de/10014245892

The roots of cooperation

Bašić, Zvonimir; Bindra, Parampreet Christopher; … - 2021 - This version: 10 June 2021

and indirect reciprocity as well as third-party punishment - emerges earliest as an effective means to increase … of defectors is applied. Children also engage in reciprocating others, showing that reciprocity strategies are already … prevalent at a very young age. However, direct and indirect reciprocity treatments do not increase overall cooperation rates, as …

Persistent link: https://www.econbiz.de/10012584102

An experimental study on the effects of communication, credibility, and clustering in network gamess

Charness, Gary; Feri, Francesco; Meléndez-Jiménez, … - 2019

The effectiveness of social interaction depends strongly on an ability to coordinate actions efficiently. In large networks, such coordination may be very difficult to achieve and may depend on the communication technology and the network structure. We examine how pre-play communication and...

Persistent link: https://www.econbiz.de/10012003459

How uncertainty and ambiguity in tournaments affect gender differences in competitive behavior

Balafoutas, Loukas; Sutter, Matthias - 2019

Tournament incentives prevail in labor markets. Yet, the number of tournament winners is often unclear to competitors. While it is hard to measure how this uncertainty affects work performance and willingness to compete in the field, it can be studied in a controlled lab experiment. We present a...

Persistent link: https://www.econbiz.de/10012007413

Reveal it or conceal it : on the value of second opinions in a low-entry-barriers credence goods market

Bindra, Parampreet Christopher; Kerschbamer, Rudolf; … - 2020

Credence goods markets with their asymmetric information between buyers and sellers are prone to large inefficiencies. In theory, poorly informed consumers can protect themselves from maltreatment through sellers by asking for second opinions from other sellers. Yet, empirical evidence whether...

Persistent link: https://www.econbiz.de/10012224509

Diagnostic uncertainty and insurance coverage in credence goods markets

Balafoutas, Loukas; Fornwagner, Helena; Kerschbamer, Rudolf - 2023 - This version: 29 September 2023

In markets for credence goods - such as health care or repair services - fraudulent behavior by better informed experts is a common problem. Our model studies how four common features shape experts' provision behavior in credence goods markets: (i) diagnostic uncertainty of experts; (ii)...

Persistent link: https://www.econbiz.de/10014391621

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/10011988274