Misconduct in Credence Good Markets /

We examine misconduct in credence good markets with price taking experts. We propose a market-level model in which price-taking experts extract surplus based on the value of their firm's brand and their own skill. We test the predictions of the model using sales complaint data for exclusive and...

Ausführliche Beschreibung

Gespeichert in:
1. Verfasser:
Brown, Jennifer
Körperschaft:
National Bureau of Economic Research
Weitere Verfasser:
Minor, Dylan B.
Format:
Elektronisch E-Book
Sprache:
Englisch
Veröffentlicht:
Cambridge, Mass. National Bureau of Economic Research 2012.
Zusammenfassung:
We examine misconduct in credence good markets with price taking experts. We propose a market-level model in which price-taking experts extract surplus based on the value of their firm's brand and their own skill. We test the predictions of the model using sales complaint data for exclusive and independent insurance agents. We find that exclusive insurance agents working for large branded firms are more likely to be the subject of a justified sales complaint, relative to independent experts, despite doing substantially less business. In addition, more experienced experts attract more complaints per year.
Umfang:
1 online resource: illustrations (black and white);
Anmerkungen:
December 2012.
Schlagworte: