What Drives Taxi Drivers? A Field Experiment on Fraud in a Market for Credence Goods

Loukas Balafoutas, Adrian Beck, Rudolf Kerschbamer and Matthias Sutter

The Review of Economic Studies, 2013, vol. 80, issue 3, 876-891

Abstract: Credence goods are characterized by informational asymmetries between sellers and consumers that invite fraudulent behaviour by sellers. This article presents a natural field experiment on taxi rides in Athens, Greece, set up to measure different types of fraud and to examine the influence of passengers' presumed information and income on the extent of fraud. We find that passengers with inferior information about optimal routes are taken on significantly longer detours, while lack of information on the local tariff system increases the likelihood of manipulated bills by about fifteen percentage points. Passengers' perceived income seems to have no effect on fraud. Copyright 2013, Oxford University Press.

Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (151)

Downloads: (external link)
http://hdl.handle.net/10.1093/restud/rds049 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: What Drives Taxi Drivers? A Field Experiment on Fraud in a Market for Credence Goods (2011)
Working Paper: What drives taxi drivers? A field experiment on fraud in a market for credence goods (2011)
Working Paper: What Drives Taxi Drivers? A Field Experiment on Fraud in a Market for Credence Goods (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:restud:v:80:y:2013:i:3:p:876-891

Access Statistics for this article

The Review of Economic Studies is currently edited by Thomas Chaney, Xavier d’Haultfoeuille, Andrea Galeotti, Bård Harstad, Nir Jaimovich, Katrine Loken, Elias Papaioannou, Vincent Sterk and Noam Yuchtman

More articles in The Review of Economic Studies from Review of Economic Studies Ltd
Bibliographic data for series maintained by Oxford University Press ().