Balafoutas, Loukas; Fornwagner, Helena; Kerschbamer, Rudolf - 2020 - This version: 5 November 2020
is known so far about how diagnostic uncertainty of sellers affects market outcomes, and how one widespread feature of … such markets, insurance on the customer side, interacts with the degree of diagnostic uncertainty. We present a model that … analyzes the effects of both diagnostic uncertainty and insurance in a unified framework and we test the model's predictions in …