What Drives Taxi Drivers? A Field Experiment on Fraud in a Market for Credence Goods

S-Tier
Journal: Review of Economic Studies
Year: 2013
Volume: 80
Issue: 3
Pages: 876-891

Score contribution per author:

2.011 = (α=2.01 / 4 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Credence goods are characterized by informational asymmetries between sellers and consumers that invite fraudulent behaviour by sellers. This article presents a natural field experiment on taxi rides in Athens, Greece, set up to measure different types of fraud and to examine the influence of passengers' presumed information and income on the extent of fraud. We find that passengers with inferior information about optimal routes are taken on significantly longer detours, while lack of information on the local tariff system increases the likelihood of manipulated bills by about fifteen percentage points. Passengers' perceived income seems to have no effect on fraud. Copyright 2013, Oxford University Press.

Technical Details

RePEc Handle
repec:oup:restud:v:80:y:2013:i:3:p:876-891
Journal Field
General
Author Count
4
Added to Database
2026-01-24