Putting on a tight leash and levelling playing field: an experiment in strategic obfuscation and consumer protection

Yiquan Gu, Tobias Wenzel

Research output: Contribution to journalArticle

6 Citations (Scopus)
124 Downloads (Pure)

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.
Original languageEnglish
Pages (from-to)120-128
JournalInternational Journal of Industrial Organization
Volume42
DOIs
Publication statusPublished - Sep 2015

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