La competencia reduce los “clavos”

We show that a higher degree of competition lowers the incentive to overcharge. We find that firms facing a critical financial situation are more likely to overcharge. Garages with a high competence are less likely to overcharge than those with a low competence. Our results also indicate that less reputation-oriented car repair shops defraud their customers more often than those with high reputational concerns.

What drives fraud in a credence goods market? - Evidence from a field experiment Alexander Rasch/ Christian Waibel