Wenzel, Tobias - In: Journal of Economic Behavior & Organization 98 (2014) C, pp. 89-96
This paper studies unshrouding decisions in a framework similar to Gabaix and Laibson (2006), but considers an alternative unshrouding mechanism where the impact of advertising add-on information depends on the number of unshrouding firms. We show that shrouding becomes less prevalent as the...