Gender Effects in Credence Goods Markets: An Experimental Study

How men and women self-sort by payment scheme may have implications on their prevalence in different industries and positions. In this study, we examined the effect of gender on self-sorting by payment structure (i.e., fee-for-service, capitation, and salary) in a credence goods environment. We found that there was no difference in gender, ability, or confidence in the likelihood of selecting a payment structure. Furthermore, observed behavior within each payment structure did not differ across genders; that is, both males and females experts had a negative impact on their customers under fee-for-service and their positive impact under salary. Within each payment structure, males and females earned the same amount. Overall, we found no differences across genders in payment selection or behavior thereafter in a credence goods environment.