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Ignorance is bliss? Uncertainty about product valuation may benefit consumers

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  • Tarcisio da Graça
  • Robert Masson

Abstract

Product information which is beneficial for an individual consumer may hurt if disseminated widely. Even with rational expectations, a fallacy of composition may occur if information leads to demand and price increases.

Suggested Citation

  • Tarcisio da Graça & Robert Masson, 2013. "Ignorance is bliss? Uncertainty about product valuation may benefit consumers," Applied Economics Letters, Taylor & Francis Journals, vol. 20(9), pages 897-902, June.
    • Handle: RePEc:taf:apeclt:v:20:y:2013:i:9:p:897-902
    DOI: 10.1080/13504851.2012.761333
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    References listed on IDEAS

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    1. Avinash Dixit & Victor Norman, 1978. "Advertising and Welfare," Bell Journal of Economics, The RAND Corporation, vol. 9(1), pages 1-17, Spring.
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    Cited by:

    1. Mark Braverman & Jing Chen & Sampath Kannan, 2016. "Optimal Provision-After-Wait in Healthcare," Mathematics of Operations Research, INFORMS, vol. 41(1), pages 352-376, February.

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