TY - GEN AB - In this paper, we analyze a credence goods model adjusted to the health care market with regulated prices and heterogeneous experts. Experts are physicians and are assumed to differ in their cost of treating a small problem. We investigate the effects of this heterogeneity on the physicians’ level of fraud and on the patients’ search for second opinions. We find that introducing a fraction of more efficient low-cost physicians always increases social welfare, but in some cases only because of the raised physicians’ surplus. When the low-cost physicians’ cost advantage is small, imposing a share of low-cost physicians does not change the equilibrium fraud level. When the cost advantage is large, however, different changes in the fraud level occur depending on the share of generated low-cost physicians, the search rate and the initial level of fraud. AU - Heinzel, Joachim Maria Josef ID - 7630 KW - credence goods KW - treatment efficiency KW - heterogeneous experts KW - overcharging TI - Credence Goods Markets with Heterogeneous Experts VL - 118 ER - TY - GEN AB - We analyze a credence goods market adapted to a health care market with regulated prices, where physicians are heterogeneous regarding their fairness concerns. The opportunistic physicians only consider monetary incentives while the fair physicians, in addition to a monetary payoff, gain an non-monetary utility from being honest towards patients. We investigate how this heterogeneity affects the physicians’ equilibrium level of overcharging and the patients’ search for second opinions (which determines overall welfare). The impact of the heterogeneity on the fraud level is ambiguous and depends on several factors such as the size of the fairness utility, the share of fair physicians, the search level and the initial fraud level. Introducing heterogeneity does not affect the fraud or the search level when the share of fair physicians is small. However, when social welfare is not at its maximum, social welfare always increases if we introduce a sufficiently large share of fair physicians. AU - Heinzel, Joachim Maria Josef ID - 8873 KW - credence goods KW - heterogeneous experts KW - fairness KW - overcharging TI - Credence Goods Markets with Fair and Opportunistic Experts VL - 119 ER - TY - JOUR AB - This paper examines the evolutionary stability of behaviour in contests where players’ participation can be stochastic. We find, for exogenously given participation probabilities, players exert more effort under the concept of a finite-population evolutionarily stable strategy (FPESS) than under Nash equilibrium (NE). We show that there is ex-ante overdissipation under FPESS for sufficiently large participation probabilities, if, and only if, the impact function is convex. With costly endogenous entry, players enter the contest with a higher probability and exert more effort under FPESS than under NE. Importantly, under endogenous entry, overdissipation can occur for all (Tullock) contest success functions, in particular those with concave impact functions. AU - Gu, Yiquan AU - Hehenkamp, Burkhard AU - Leininger, Wolfgang ID - 13148 JF - Journal of Economic Behavior & Organization SN - 0167-2681 TI - Evolutionary equilibrium in contests with stochastic participation: Entry, effort and overdissipation ER - TY - GEN AB - We analyze the incentives for retail bundling and the welfare effects of retail bundling in a decentralized distribution channel with two retailers and two monopolistic manufacturers. One manufacturer exclusively sells his good to one retailer, whereas the other manufacturer sells his good to both retailers. Thus, one retailer is a monopolist for one product but competes with the other retailer in the second product market. The two-product retailer has the option to bundle his goods or to sell them separately. We find that bundling aggravates the double marginalization problem for the bundling retailer. Nevertheless, when the retailers compete in prices, bundling can be more profitable than separate selling for the retailer as bundling softens the retail competition. The ultimate outcome depends on the manufacturers’ marginal costs. Given retail quantity competition, however, bundling is in no case the retailer’s best strategy. Furthermore, we show that profitable bundling reduces consumer and producer surplus in the equilibrium. AU - Heinzel, Joachim Maria Josef ID - 10332 KW - retail bundling KW - leverage theory KW - double marginalization TI - Bundling in a Distribution Channel with Retail Competition ER - TY - GEN AU - Lütkevedder, Dennis ID - 39056 TI - "Data-Driven Mergers" in digitalen Märkten - eine wettbewerbspolitische Analyse ER - TY - GEN AU - Memon, Uzair Ahmed ID - 39059 TI - On the Implications of Big Data for Competition Policy - Big data, Market power, Competition law ER - TY - GEN AU - Milczarek, André ID - 39067 TI - Risiken und Gefahren von Marktmacht in digitalen Märkten - eine wettbewerbspolitische Analyse ER - TY - GEN AU - Heinrichs, Fabian ID - 37684 TI - Digitale Märkte - Zu den Auswirkungen von Big Data auf Marktmacht und die Bildung von Kartellen ER - TY - GEN AU - Fortmeier, Julia ID - 38042 TI - Anreizwirkungen der Bonusregelung - Eine wettbewerbspolitische Analyse ER - TY - GEN AU - Hagedorn, Carolin ID - 38045 TI - The intersection of privacy and competition law - Lessons from data-driven mergers ER -