Individual Heterogeneity and Cultural Attitudes in Credence Goods Provision

82 Pages Posted: 16 Apr 2020

See all articles by Johnny Tang

Johnny Tang

Harvard University, Department of Economics

Date Written: April 1, 2020

Abstract

I study the heterogeneity of credence goods provision in taxi drivers taking detours in New York City. First, I document that there is significant detouring on average by drivers. Second, there is significant heterogeneity in cheating across individuals, yet each individual’s propensity to take detours is stable: drivers who detour almost always detour, while those who do not detour almost never do. Drivers who take longer detours on each trip also take such trips more often. Third, cultural attitudes plausibly explain some of this heterogeneity in behavior across individuals.

Keywords: Credence goods, heterogeneity, learning, cultural economics

JEL Classification: D10, Z10

Suggested Citation

Tang, Johnny, Individual Heterogeneity and Cultural Attitudes in Credence Goods Provision (April 1, 2020). European Economic Review, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3565973

Johnny Tang (Contact Author)

Harvard University, Department of Economics ( email )

Cambridge, MA 02138

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