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Framing and subject pool effects in healthcare credence goods

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  • Angerer, Silvia
  • Glätzle-Rützler, Daniela
  • Waibel, Christian

Abstract

Credence goods markets are characterized by asymmetric information between experts and consumers, specifically relating to quality (what is needed and/or supplied). The functioning of the market is heavily reliant on trust on the side of the consumer and trustworthiness on the side of the expert. However, a large body of empirical and experimental research has demonstrated the existence of overtreatment, undertreatment, and overcharging in several credence goods markets. In this paper, we study two determinants of trust and trustworthiness in experimental credence goods markets: the effects of a health frame (vs. a neutral frame) and an expert subject pool (vs. standard student subject pool). Our results reveal that the subject pool, in combination with the health frame, has a significant impact on the level of trust and trustworthiness, shown by a higher willingness of consumers (patients) to enter the market and a lower rate of undertreatment by experts.

Suggested Citation

  • Angerer, Silvia & Glätzle-Rützler, Daniela & Waibel, Christian, 2023. "Framing and subject pool effects in healthcare credence goods," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 103(C).
    • Handle: RePEc:eee:soceco:v:103:y:2023:i:c:s2214804322001434
    DOI: 10.1016/j.socec.2022.101973
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    Cited by:

    1. Manela Karunadasa & Katri K. Sieberg & Toni Tapani Kristian Jantunen, 2023. "Payment Systems, Supplier-Induced Demand, and Service Quality in Credence Goods: Results from a Laboratory Experiment," Games, MDPI, vol. 14(3), pages 1-31, May.
    2. Hermanns, Benedicta & Kokot, Johanna, 2023. "Contextual framing effects on risk aversion assessed using the bomb risk elicitation task," Economics Letters, Elsevier, vol. 229(C).

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    More about this item

    Keywords

    Healthcare economics; Trust; Fraud; Framing effects; Experts; Credence goods; Undertreatment; Overcharging; Laboratory experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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