Strategic Obfuscation and Retail Pricing
Zohra Mechemache (),
Gordon Klein () and
Timothy J. Richards
No 16-733, TSE Working Papers from Toulouse School of Economics (TSE)
Retailers often stock items that are only slightly differentiated from others??differ- ent sizes of a popular brand, or different ?avors in a common product line for instance. We argue that this practice is a form of strategic obfuscation, intended to raise con- sumer search costs, and margins on non-comparable products. We test our hypothesis using examples from several product categories in German and French retail scanner data. We ?nd that, after controlling for other explanations for how margins can vary with package size, we cannot rule out strategic obfuscation as a feature of our retail sales data.
Keywords: differentiation; price discrimination; retail pricing; search model; strategic obfuscation (search for similar items in EconPapers)
JEL-codes: D43 L13 M31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-com and nep-mkt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://www.tse-fr.eu/sites/default/files/TSE/docum ... /2016/wp_tse_733.pdf Full text (application/pdf)
Working Paper: Strategic Obfuscation and Retail Pricing (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:tse:wpaper:31198
Access Statistics for this paper
More papers in TSE Working Papers from Toulouse School of Economics (TSE) Contact information at EDIRC.
Bibliographic data for series maintained by ().