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Free Competition and the Optimal Amount of Fraud
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“These are especially important for organic foods since they are credence goods (Darby and Karni, 1973).”
From How the interplay between consumer motivations and values influences organic food identity and behavior (2018) · cites this paper as Darby and Karni, 1973
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“This is when 1 A credence good is a good whose quality cannot be determined by the buyer even after consumption (Darby and Karni 1973). the consumer cares about the production process, even if it does not affect product quality, for example due to animal, environmental, ethical, and religious…”
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“The level of quality assurance (if not of seller experience) might, therefore, be significantly higher than it is for search or even experience goods (credence goods, as Darby and Karni (1973) point out, provide sellers with a special opportunity for fraud with which we are not concerned here).”
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“Adding to these obstacles, CSR claims are typically credence information situations (Darby and Karni, 1973), which, similar to information for experience goods, are less verifiable than search information situations (Nelson, 1970) and therefore more prone to scepticism.”
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“SEC qualities provide a suitable theoretical framework for the indirect measurement of subjective evaluation uncertainty of different goods (Nelson 1970; Darby and Karni 1973).”
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“The literature distinguishes between experience service and credence service on the basis of the ease or difficulty in collecting information to evaluate the services (Darby and Karni, 1973; Keh and Pang, 2010; Sun et al., 2012).”
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“Darby and Karni (1973), Karpoff and Lott (1993), Klein and Leffler (1981), and Lott (1996) argue that if investors differ in their valuation of fraud risk then some investors would accept a high level of fraud risk in return for superior performance or lower fees, while other investors would choose…”
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“As service research can benefit from an improved understanding of relationship quality’s predictive power across different service contexts we selected services that belong to opposite ends of the search, experience, credence (SEC)(3) framework (Darby and Karni, 1973; Nelson, 1970), as called for by Athanasopoulou (20…”
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Metadata
- Authors
- Darby, M. R., & Karni, E.
- ORCID
- Darby, Michael R.
- Venue
- The Journal of Law and Economics
- Publisher
- University of Chicago Press
- Published
- 1973-04
- Volume
- 16
- Issue
- 1
- Pages
- 67-88
- ISSN
- 0022-2186 (ISSN-L)
- 1537-5285
- OpenAlex
- W2086888884
- Cited by
- 3,947
- References
- 0
- Citations by year
- 2026: 167 · 2025: 101 · 2024: 101 · 2023: 124 · 2022: 130 · 2021: 133 · 2020: 144 · 2019: 134 · 2018: 153 · 2017: 131 · 2016: 166 · 2015: 166 · 2014: 172 · 2013: 178 · 2012: 203
- FWCI
- 13.55
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- The Journal of Law and Economics (publishedVersion)
- bepress Legal Repository (submittedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Law, Economics, and Judicial Systems
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Legal and Constitutional Studies
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Merger and Competition Analysis
- Keywords
- fraud, free competition, fraud deterrence, market competition
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
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