City Research Online

Opaque Selling

Celik, L. ORCID: 0000-0002-7668-6358 and Anderson, S. (2020). Opaque Selling (10.2139/ssrn.3521450). .

Abstract

We study “opaque” selling in multiproduct environments – a marketing practice in which sellers strategically withhold product information by keeping important characteristics of their products hidden until after purchase. We show that a monopolist will always use opaque selling, but it is not first-best optimal to do so. However, opaque selling might be used at the constrained optimum (with the monopolist’s pricing behavior taken as given). For linear disutility costs, it is optimal for a monopolist to offer a single opaque product.

Publication Type: Monograph (Working Paper)
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HG Finance
Departments: School of Arts & Social Sciences > Economics
URI: https://openaccess.city.ac.uk/id/eprint/23597
[img]
Preview
Text - Pre-print
Download (843kB) | Preview

Export

Downloads

Downloads per month over past year

View more statistics

Actions (login required)

Admin Login Admin Login