Credence goods markets, such as those for car repairs and medical treatments, are generally characterized by an ex-ante and ex-post information asymmetry between the uninformed buyer and the informed seller. Previous literature demonstrates that efficiency and fraud in a monopolist credence...

We consider a market in which some consumers are fully informed about the quality of a product sold by different firms, while other consumers are uninformed. We examine the effects on the prices and qualities offered in the market of increasing the fraction of informed consumers. In equilibrium,...

We consider a market in which some consumers are fully informed about the quality of a product sold by different firms, while other consumers are uninformed. We examine the effects on the prices and qualities offered in the market of increasing the fraction of informed consumers. In equilibrium,...

The operations literature has increasingly accounted for the presence of strategic consumer behavior. Theory suggests that such a behaviour exposes firms to intertemporal competition and exerts downwards pressure on prices. However, little evidence exists to demonstrate the outcome effect and...