Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5077899 | International Journal of Industrial Organization | 2015 | 9 Pages |
Abstract
The paper reports the results of an experiment where asymmetric sellers of a product can obfuscate the market. We show that policy measures may have unintended effects of increasing obfuscation incentives. We find that policies that limit the effectiveness of obfuscation and policies that promote parity between firms can lead less prominent firms to increase their obfuscation efforts. Despite this unintended effect, however, the former type of policies is effective in boosting consumer welfare.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Yiquan Gu, Tobias Wenzel,