We examine the influence of guilt and trust on the performance of credence goods markets. An expert can make a promise … experts make the predicted promise; (2) proper promises induce consumer-friendly behavior; and (3) higher interaction prices … to a consumer first, whereupon the consumer can express her trust by paying an interaction price before the expert …

between experts and consumers. The functioning of the market heavily relies on trust on the side of the consumer as well as … determinants of trust and trustworthiness in experimental credence goods markets, namely the effect of a health frame (versus a … results reveal that the identity in combination with a health frame has a significant impact on the level of trust shown by a …

as the main cause and design a parsimonious experiment with exogenous prices that allows classifying experts as either …

also uncover an important interaction effect: if consumers are insured, experts invest less in diagnostic precision. We …

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 … selection and fixed effects regressions support the model's predictions and show that causality goes from good experts to fair …