CES Visiting Scholar
During his stay in Munich, Marco A. Schwarz will work on various theoretical and experimental projects on credence goods. Credence goods are goods or services for which an expert knows better than a customer what specific goods or services the customer needs. Examples include healthcare services, financial and legal advice and repairs. In one project, Mr. Schwarz will analyze the interaction of competition and reputation in credence goods markets. Making past decisions of experts more transparent and intensifying competition may lead to a welfare loss. In another project, he will examine the effects of unobservable heterogeneity of experts’ diagnostic abilities in credence goods markets. An important take-away is that neither increasing the share of high-ability experts nor marginally improving the low-ability experts’ diagnostic abilities necessarily lead to more efficient market outcomes, but substantially improving the low-ability experts’ diagnostic abilities, e.g., by introducing higher minimum-standards, can guarantee efficient market outcomes.
Marco A. Schwarz works in the areas of (Applied) Microeconomic Theory and Behavioral Economics, with applications in Industrial Organization, Financial Economics, Organizational Economics and Networks.
Mr. Schwarz is a postdoctoral researcher at the University of Innsbruck. He obtained his PhD in Economics in 2017 from LMU Munich, and he also holds master’s and bachelor’s degrees from LMU Munich. During his studies, he stayed at the University of California at Berkeley twice, as a visiting student and a visiting scholar. His research has been published in the Journal of Public Economics, the International Economic Review and Economics Letters.