Kremer & Debo (2016)

Inferring Quality from Wait Time

Finding to replicate

Relative to the setting with no informed consumers (q=0), the presence of informed consumers (q=0.50) makes uninformed consumers (a) less likely to purchase upon observing a short wait (w=1) and (b) less sensitive to the purchase probability reduction associated with each marginal unit of wait time. We test these two findings in the setting with a high prior of quality (p0=0.50, treatments Q00 and Q50).