Individual Heterogeneity and Cultural Attitudes in Credence Goods Provision

TL;DR

This paper investigates individual differences and cultural influences on taxi drivers' detouring behavior in New York City, revealing stable patterns of cheating and the role of cultural attitudes in explaining heterogeneity.

Contribution

It provides empirical evidence on the heterogeneity and stability of detouring behavior among taxi drivers and links cultural attitudes to this variation.

Findings

Significant detouring behavior observed among drivers.

Heterogeneity in cheating is stable within individuals.

Cultural attitudes partly explain behavioral differences.

Abstract

I study the heterogeneity of credence goods provision in taxi drivers taking detours in New York City. First, I document that there is significant detouring on average by drivers. Second, there is significant heterogeneity in cheating across individuals, yet each individual's propensity to take detours is stable: drivers who detour almost always detour, while those who do not detour almost never do. Drivers who take longer detours on each trip also take such trips more often. Third, cultural attitudes plausibly explain some of this heterogeneity in behavior across individuals.