Sorting, Reputation and Entry in a Market for Experts

摘要: This paper analyses the market for professional (expert) services where experts are motivated by reputational concerns. A key feature of such markets, which is often overlooked, that clients can have specific characteristics affect their evaluation service, and (or) likelihood service be provided successfully. These different induce to choose between with reputations. The shows choices an important impact on incentives provide a high quality service. In particular, sorting affects through three channels: changes in types client who indifferent getting from reputation, information good performance as signal expert's talent, average complexity expert provides impacts marginal efficiency effort. also investigates under what conditions increased entry increases exert results model applied examine effects into markets doctors, lawyers, consultancies.