Dr. Xiaoxuan Meng received her PhD from City University of Hong Kong.
Prior to joining HKU, Dr. Meng was a part-time lecturer at HKUST and Lingnan University.
- “Trust Building in Credence Goods Markets” (with Yuk-Fai Fong and Ting Liu), American Economic Journal: Microeconomics, 2022, 14(1), 490-528.
- “Exclusive Dealing when Upstream Displacement is Possible” (with Ke Liu), Journal of Economics and Management Strategy, 2021, 30(4), 830-843.
- “Using Customer Service to Build Clients’ Trust” (with Yuk-Fai Fong, Xiaoxiao Hu, and Ting Liu), Journal of Industrial Economics, 2020, 68(1), 136-155.
We study trust building in credence-goods markets in a dynamic setting. When consumers' expected loss is low and it is efficient to fix only the more severe problem, there is no trade in the one-shot game. In the repeated game, an expert's honesty is monitored through consumers' rejection of his recommendations. The expert's profit in the optimal equilibrium weakly increases in the discount factor but does not achieve the first best, which contrasts sharply with the optimal equilibrium in experience-goods markets. The optimal equilibrium involves undertreatment if the expert is sufficiently patient, and overtreatment if he is moderately patient.