What Drives Fraud in a Credence Goods Market? – Evidence from a Field Study
利用德国汽车协会的实地研究数据,控制修理厂能力、财务状况和声誉因素后,发现更激烈的竞争降低了专家企业欺诈客户的动机。
Abstract This paper investigates the impact of competition on an expert firm's incentive to defraud its customers in a credence goods market. Controlling for the competence of car repair shops, their financial situation, and reputational concerns, we use and complement the data set from a nationwide field study conducted by the German Automobile Association that regularly checks the reliability of garages in Germany. We find that more intense competition lowers a firm's incentive to defraud its customers.