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

Gu, Y ORCID: 0000-0002-4594-4852 and Wenzel, T (2015) Putting on a tight leash and levelling playing field: An experiment in strategic obfuscation and consumer protection. International Journal of Industrial Organization, 42. pp. 120-128.

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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.

Item Type:	Article
Uncontrolled Keywords:	experiment, obfuscation, consumer protection, behavioural industrial organisation
Depositing User:	Symplectic Admin
Date Deposited:	29 Sep 2016 15:41
Last Modified:	19 Jan 2023 07:29
DOI:	10.1016/j.ijindorg.2015.07.008
Related URLs:	Publisher
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3003517