We consider an oligopolistic market where firms compete in price and quality and where consumers are heterogeneous in …-inefficiency of the price/quality offers. But, better price/quality combinations are signalled with lower prices in one type and with … knowledge: some consumers know both the prices and quality of the products offered, some know only the prices and some know …

Despite intense price competition firms obfuscate product information when it is relatively costless to reveal … to conceal prices but still attract naiuml;ve consumers dampens competition and allows prices to be set above marginal …