Credence goods in the literature: What the past fifteen years have taught us about fraud, incentives, and the role of institutions
Loukas Balafoutas () and
Rudolf Kerschbamer ()
Working Papers from Faculty of Economics and Statistics, Universität Innsbruck
We review the literature on credence goods since Dulleck and Kerschbamer (Journal of Economic Literature 44(1), 5-42, 2006). We consider various markets for credence goods and briefly discuss evidence on the extent of fraud. We then review theoretical and empirical contributions on the determinants of seller and consumer behavior in markets for credence goods. The topics include informational asymmetries, pro-social motivations and seller characteristics, as well as several features of the market structure and institutional environment (separation of diagnosis and treatment, liability, verifiability, reputational concerns, competition between experts and second opinions). We also describe recent developments in this area of research (such as the role of investing in more precise diagnostic technologies) and offer an outlook on future questions.
Keywords: Credence Goods; Expert Services; Fraud; Undertreatment; Overtreatment; Overcharging (search for similar items in EconPapers)
JEL-codes: D18 D21 D22 D82 D83 I11 L15 (search for similar items in EconPapers)
Pages: 39 pages
New Economics Papers: this item is included in nep-com, nep-hpe and nep-law
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (47) Track citations by RSS feed
Downloads: (external link)
Journal Article: Credence goods in the literature: What the past fifteen years have taught us about fraud, incentives, and the role of institutions (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:inn:wpaper:2020-01
Access Statistics for this paper
More papers in Working Papers from Faculty of Economics and Statistics, Universität Innsbruck Contact information at EDIRC.
Bibliographic data for series maintained by Janette Walde ().