Credence Goods Markets with Heterogeneous Experts

J.M.J. Heinzel, Credence Goods Markets with Heterogeneous Experts, CIE Working Paper Series, Paderborn University, 2019.

Download
Restricted WP118.pdf 286.37 KB
Report | English
Abstract
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.
Publishing Year
Volume
118
LibreCat-ID

Cite this

Heinzel JMJ. Credence Goods Markets with Heterogeneous Experts. Vol 118. Paderborn University: CIE Working Paper Series; 2019.
Heinzel, J. M. J. (2019). Credence Goods Markets with Heterogeneous Experts (Vol. 118). Paderborn University: CIE Working Paper Series.
@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} }
Heinzel, Joachim Maria Josef. Credence Goods Markets with Heterogeneous Experts. Vol. 118. CIE Working Paper Series. Paderborn University: CIE Working Paper Series, 2019.
J. M. J. Heinzel, Credence Goods Markets with Heterogeneous Experts, vol. 118. Paderborn University: CIE Working Paper Series, 2019.
Heinzel, Joachim Maria Josef. Credence Goods Markets with Heterogeneous Experts. Vol. 118, CIE Working Paper Series, 2019.
Main File(s)
File Name
WP118.pdf 286.37 KB
Access Level
Restricted Closed Access
Last Uploaded
2019-02-12T08:21:37Z


Export

Marked Publications

Open Data LibreCat

Search this title in

Google Scholar