Second opinions and price competition: Inefficiency in the market for expert advice

Review of Economic Studies

Volumn 70, Issue 2, 2003, Pages 417-437

  Pesendorfer, Wolfgang ^a   Wolinsky, Asher ^b  

^a PRINCETON UNIVERSITY   (United States)

^b NORTHWESTERN UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

COMPETITION (ECONOMICS); MARKET CONDITIONS; PRICE DYNAMICS; THEORETICAL STUDY;

EID: 0038135315     PISSN: 00346527     EISSN: None     Source Type: Journal    
DOI: 10.1111/1467-937X.00250     Document Type: Article

References (13)

1. ALGER, I. and SALANIE, F. (2001) Competitive Pricing of Expert Services: Equilibrium Fraud and Partial Specialization (Boston College).
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3. DIAMOND, P. (1971), "A Model of Price Adjustment", Journal of Economic Theory, 3, 156-168.
4. DULLECK, U. and KERSCHBAUMER, R. (2001), "On Doctors, Mechanics and Computer Specialists or Where are the Problems with Credence Goods" (Working Paper No. 0101, Department of Economics, University of Vienna).
5. EMONS, W. (1997), "Credence Goods and Fraudulent Experts", RAND Journal of Economics, 28, 107-119.
6. EMONS, W. (2001), "Credence Good Monopolists", International Journal of Industrial Organization, 19, 375-389.
7. LAFFONT, J.J. and TIROLE, J. (1993) A Theory of Incentives in Procurement and Regulation (Cambridge, MA: MIT Press).
8. PESENDORFER, W. and WOLINSKY, A. (1998), "Second Opinions and Price Competition: Inefficiency in the Market for Expert Advice" (CMSEMS D.P. No. 1229, Northwestern University).
9. PITCHIK, C. and SCHOTTER, A. (1987) "Honesty in a Model of Strategic Information Transmission", American Economic Review, 77, 1032-1036.
10. PITCHIK, C. and SCHOTTER, A. (1989) Information Transmission in Regulated Markets (New York University).
11. TAYLOR, C. (1995), "The Economics of Breakdowns, Checkups and Cures", Journal of Political Economy, 103, 53-74.
12. TELSER, L. (1960), "Why Should Manufacturers Want Fair Trade?", Journal of Law and Economics, 3, 86-105.
13. WOLINSKY, A. (1993), "Competition in a Market for Informed Experts' Services", RAND Journal of Economics, 24, 380-398.