Price Deception, Market Power and Consumer Policy

Chris Wilson
Additional contact information
Chris Wilson: Centre for Competition Policy

No 2004-01, Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) from Centre for Competition Policy, University of East Anglia, Norwich, UK.

Abstract: This paper presents a model in which a firm attempts to gain market power by pricing above the competitive market price and simply trying to persuade illinformed consumers not to search for other lower priced firms. Fictitious price comparisons, or false sale signs could be used in this way to deceptively and profitably deter consumer search. A simplified model shows how this mechanism could exist when combined with moderately enforced consumer regulatory policy.

Keywords: Price communications; Search Deterrence; Market Power; Cheap Talk (search for similar items in EconPapers)
JEL-codes: D82 D83 L13 L49 (search for similar items in EconPapers)
Date: 2004-09-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ueaeco.github.io/working-papers/papers/ccp/CCP-04-01.pdf main text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uea:ueaccp:2004_01

Ordering information: This working paper can be ordered from
Juliette Hardman, Center for Competition Policy, University of East Anglia, Norwich Research Park, Norwich, NR4 7TJ, UK

Access Statistics for this paper

More papers in Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) from Centre for Competition Policy, University of East Anglia, Norwich, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Juliette Hardmad ().