search query: @journal_id 97 / total: 799
reference: 13 / 799
| Author: | Pesendorfer, W. Wolinsky, A. |
| Title: | Second opinions and price competition: inefficiency in the market for expert advice |
| Journal: | Review of Economic Studies
2003 : VOL. 70:2(243), p. 417-437 |
| Index terms: | Prices Competition Price control Knowledge-based systems |
| Language: | eng |
| Abstract: | The authors consider a market in which an expert mudt exert costly but unobservable effort to identify the service that meets the consumer's need. In their model , experts offer competing contracts and the consumer may gather multiple opinions. The authors explore the incentives that a competitive sampling of prices and opinions provides for experts to exert effort and find that there is a tension between price competition and the equilibrium effort. An intervention, that limits price competition via price control, increases welfare. |
SCIMA