---
_id: '7630'
abstract:
- lang: eng
  text: 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.
author:
- first_name: Joachim Maria Josef
  full_name: Heinzel, Joachim Maria Josef
  id: '53445'
  last_name: Heinzel
citation:
  ama: 'Heinzel JMJ. <i>Credence Goods Markets with Heterogeneous Experts</i>. Vol
    118. Paderborn University: CIE Working Paper Series; 2019.'
  apa: 'Heinzel, J. M. J. (2019). <i>Credence Goods Markets with Heterogeneous Experts</i>
    (Vol. 118). Paderborn University: CIE Working Paper Series.'
  bibtex: '@book{Heinzel_2019, place={Paderborn University}, series={CIE Working Paper
    Series}, title={Credence Goods Markets with Heterogeneous Experts}, volume={118},
    publisher={CIE Working Paper Series}, author={Heinzel, Joachim Maria Josef}, year={2019},
    collection={CIE Working Paper Series} }'
  chicago: 'Heinzel, Joachim Maria Josef. <i>Credence Goods Markets with Heterogeneous
    Experts</i>. Vol. 118. CIE Working Paper Series. Paderborn University: CIE Working
    Paper Series, 2019.'
  ieee: 'J. M. J. Heinzel, <i>Credence Goods Markets with Heterogeneous Experts</i>,
    vol. 118. Paderborn University: CIE Working Paper Series, 2019.'
  mla: Heinzel, Joachim Maria Josef. <i>Credence Goods Markets with Heterogeneous
    Experts</i>. Vol. 118, CIE Working Paper Series, 2019.
  short: J.M.J. Heinzel, Credence Goods Markets with Heterogeneous Experts, CIE Working
    Paper Series, Paderborn University, 2019.
date_created: 2019-02-12T08:18:02Z
date_updated: 2022-01-06T07:03:42Z
ddc:
- '330'
department:
- _id: '280'
- _id: '475'
file:
- access_level: closed
  content_type: application/pdf
  creator: jheinzel
  date_created: 2019-02-12T08:21:37Z
  date_updated: 2019-02-12T08:21:37Z
  file_id: '7631'
  file_name: WP118.pdf
  file_size: 286367
  relation: main_file
  success: 1
file_date_updated: 2019-02-12T08:21:37Z
has_accepted_license: '1'
intvolume: '       118'
jel:
- D82
- I11
- L15
keyword:
- credence goods
- treatment efficiency
- heterogeneous experts
- overcharging
language:
- iso: eng
place: Paderborn University
project:
- _id: '1'
  name: SFB 901
- _id: '2'
  name: SFB 901 - Project Area A
- _id: '7'
  name: SFB 901 - Subproject A3
publisher: CIE Working Paper Series
report_number: 2019-01
series_title: CIE Working Paper Series
status: public
title: Credence Goods Markets with Heterogeneous Experts
type: report
user_id: '477'
volume: 118
year: '2019'
...
---
_id: '8873'
abstract:
- lang: eng
  text: 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.
author:
- first_name: Joachim Maria Josef
  full_name: Heinzel, Joachim Maria Josef
  id: '53445'
  last_name: Heinzel
citation:
  ama: 'Heinzel JMJ. <i>Credence Goods Markets with Fair and Opportunistic Experts</i>.
    Vol 119. Paderborn University: CIE Working Paper Series; 2019.'
  apa: 'Heinzel, J. M. J. (2019). <i>Credence Goods Markets with Fair and Opportunistic
    Experts</i> (Vol. 119). Paderborn University: CIE Working Paper Series.'
  bibtex: '@book{Heinzel_2019, place={Paderborn University}, series={CIE Working Paper
    Series}, title={Credence Goods Markets with Fair and Opportunistic Experts}, volume={119},
    publisher={CIE Working Paper Series}, author={Heinzel, Joachim Maria Josef}, year={2019},
    collection={CIE Working Paper Series} }'
  chicago: 'Heinzel, Joachim Maria Josef. <i>Credence Goods Markets with Fair and
    Opportunistic Experts</i>. Vol. 119. CIE Working Paper Series. Paderborn University:
    CIE Working Paper Series, 2019.'
  ieee: 'J. M. J. Heinzel, <i>Credence Goods Markets with Fair and Opportunistic Experts</i>,
    vol. 119. Paderborn University: CIE Working Paper Series, 2019.'
  mla: Heinzel, Joachim Maria Josef. <i>Credence Goods Markets with Fair and Opportunistic
    Experts</i>. Vol. 119, CIE Working Paper Series, 2019.
  short: J.M.J. Heinzel, Credence Goods Markets with Fair and Opportunistic Experts,
    CIE Working Paper Series, Paderborn University, 2019.
date_created: 2019-04-11T08:13:53Z
date_updated: 2022-01-06T07:04:05Z
ddc:
- '330'
department:
- _id: '280'
- _id: '475'
- _id: '200'
file:
- access_level: closed
  content_type: application/pdf
  creator: jheinzel
  date_created: 2019-04-11T08:23:33Z
  date_updated: 2019-04-11T08:23:33Z
  file_id: '8875'
  file_name: WP119.pdf
  file_size: 315297
  relation: main_file
  success: 1
file_date_updated: 2019-04-11T08:23:33Z
has_accepted_license: '1'
intvolume: '       119'
jel:
- D82
- I11
- L15
keyword:
- credence goods
- heterogeneous experts
- fairness
- overcharging
language:
- iso: eng
place: Paderborn University
project:
- _id: '1'
  name: SFB 901
- _id: '2'
  name: SFB 901 - Project Area A
- _id: '7'
  name: SFB 901 - Subproject A3
publisher: CIE Working Paper Series
series_title: CIE Working Paper Series
status: public
title: Credence Goods Markets with Fair and Opportunistic Experts
type: report
user_id: '53445'
volume: 119
year: '2019'
...