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Individual heterogeneity and cultural attitudes in credence goods provision

Johnny Tang

European Economic Review, 2020, vol. 126, issue C

Abstract: I study the heterogeneity of credence goods provision in taxi drivers taking detours in New York City. First, I document that there is significant detouring on average by drivers. Second, there is significant heterogeneity in detouring across individuals, yet each individual’s propensity to take detours is stable: drivers who detour almost always detour, while those who do not detour almost never do. Drivers who take longer detours on each trip also take such trips more often. Third, cultural attitudes plausibly explain some of this heterogeneity in behavior across individuals.

Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:126:y:2020:i:c:s001429212030074x

DOI: 10.1016/j.euroecorev.2020.103442

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European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer

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