Every shroud has a silver lining: The visible benefits of hidden surcharges

de Meza, David

(2012) Every shroud has a silver lining: The visible benefits of hidden surcharges. Economics Letters, 116 (2). pp. 151-153. ISSN 0165-1765

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Opportunities for shrouded pricing drive down upfront price as firms compete to capture new customers. Unless the surcharge is sufficiently high, consumers are worse off if the practice is banned, assuming Cournot-Nash equilibrium and isoelastic demand.

Item Type	Article
Keywords	consumer protection,shrouded prices,waterbedding
Departments	Management
DOI	10.1016/j.econlet.2012.02.027
Date Deposited	16 Apr 2012 11:26
URI	https://researchonline.lse.ac.uk/id/eprint/43036

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de Meza, David
Reyniers, Diane J.

H Social Sciences (General)
HB Economic Theory

http://www.lse.ac.uk/management/people/academic-staff/dreyniers.aspx (Author)
10.1016/j.econlet.2012.02.027 (DOI)

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