Wenzel, T. (2015) Partial shrouding in asymmetric markets. Economics Letters, 136. pp. 223-226. ISSN 0165-1765
Abstract
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.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2015 Elsevier. This is an author produced version of a paper subsequently published in Economics Letters. Uploaded in accordance with the publisher's self-archiving policy. Article available under the terms of the CC-BY-NC-ND licence (https://creativecommons.org/licenses/by-nc-nd/4.0/). |
Keywords: | Add-on pricing; Shrouding; Bounded rationality |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 23 Oct 2018 13:54 |
Last Modified: | 23 Oct 2018 13:58 |
Published Version: | https://doi.org/10.1016/j.econlet.2015.09.035 |
Status: | Published |
Publisher: | Elsevier |
Refereed: | Yes |
Identification Number: | 10.1016/j.econlet.2015.09.035 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:136971 |
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