Partial Credence Goods on Review Platforms
We study a repeated credence goods market where experts provide treatment to customers. We assume that the history of transactions is recorded on a biased review platform that contains information only about treatments, and not about non-treatments.
We also introduce the notion of a partial credence good, where the customer receives a noisy signal about the quality of treatment. Absent such signals, there is a breakdown of the market. We provide a sufficient and necessary condition on the signals that guarantee the existence of any non-trivial equilibrium, as well as an efficient one
Joint work with Ronen Gradwohl
Link to the seminar recording.
תאריך עדכון אחרון : 07/06/2022