Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/229997
Authors: 
Bindra, Parampreet Christopher
Kerschbamer, Rudolf
Neururer, Daniel
Sutter, Matthias
Year of Publication: 
2020
Series/Report no.: 
Discussion Papers of the Max Planck Institute for Research on Collective Goods No. 2020/11
Abstract: 
Credence goods markets with their asymmetric information between buyers and sellers are prone to large inefficiencies. In theory, poorly informed consumers can protect themselves from maltreatment through sellers by asking for second opinions from other sellers. Yet, empirical evidence whether this is a successful strategy is scarce. Here we present a natural field experiment in the market for computer repairs. We find that revealing a second opinion from another expert to the seller does neither increase the rate of successful repairs nor decrease the average repair price. We assess under which conditions gathering a second opinion can be valuable.
Subjects: 
Credence goods
expert services
second opinions
natural field experiment
JEL: 
C93
D82
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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