October 12, 2025Open Access

From Digital Distrust to Codified Honesty: Experimental Evidence on Generative AI in Credence Goods Markets

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Human-Human markets achieve higher efficiency levels compared to AI-AI and Human-AI markets due to trust.
LLM experts earn more surplus than human experts, negatively affecting consumer surplus and creating adverse incentives.
The use of transparency improves efficiency in Human-AI-Human markets, while obfuscation eliminates gains.
Generative AI has the potential to streamline expert services but raises concerns about trust and expert preferences.

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Experimental analysis reveals generative AI's dual effects on efficiency and consumer trust in credence goods markets.

Alexander Erlei (2025) studied this question.

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