Add-on pricing, naive consumers, and the hidden welfare costs of education

Previous research shows that firms shroud high add-on prices in competitive markets with naive consumers leading to inefficiency. We analyze the effects of regulatory intervention via educating naive consumers on equilibrium prices and welfare. Our model allows firms to shroud, unshroud, or partiall...

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Bibliographic details
Volume: 6061
Main Author: Kosfeld, Michael
Schüwer, Ulrich
Format: Book
Language: English
Place of publication: Bonn IZA 2011
Data of publication: 2011
Series: Discussion paper series / Forschungsinstitut zur Zukunft der Arbeit
Subjects:
Online Access: available in Bonn?
Database: FIS Bildung Literaturdatenbank
Database information Databases - DBIS