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

de Meza, David ORCID: 0000-0002-5638-8310 and Reyniers, Diane J. ORCID: 0000-0003-0677-2020 (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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Identification Number: 10.1016/j.econlet.2012.02.027

Abstract

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
Official URL:	http://www.journals.elsevier.com/economics-letters...
Additional Information:	© 2012 Elsevier B.V.
Divisions:	Management
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HB Economic Theory
Date Deposited:	16 Apr 2012 11:26
Last Modified:	12 Dec 2024 00:07
URI:	http://eprints.lse.ac.uk/id/eprint/43036

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