Kosfeld, Michael; Schüwer, Ulrich - C.E.P.R. Discussion Papers - 2011
pricing strategy of firms. Educating consumers may do more harm than good and should thus only be considered if the regulator …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 …