Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5058599 | Economics Letters | 2015 | 4 Pages |
Abstract
â¢We analyse add-on shrouding in an asymmetric market.â¢Partial shrouding equilibria exist: firms with high (low) add-on production cost shroud (unshroud).â¢Unshrouding firms charge lower base-good prices and obtain a higher market share than shrouding firms.
This paper studies shrouding of add-on information in a market where firms differ in add-on production costs. We show that partial shrouding equilibria, characterised by a selection result, exist: Firms with high (low) add-on costs shroud (unshroud). Unshrouding firms charge lower base-good prices than shrouding firms.
Keywords
Related Topics
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Economics and Econometrics
Authors
Tobias Wenzel,