Spurious Complexity and Common Standards

Firms can exploit the cognitive limitations of consumers by devising complicated and confusing offers and setting high prices. However, as consumers learn to choose only among offers that are easily comparable, then firms find it in their own interest to adhere to common standards, and this lowers prices in the market. 

Read more


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s