RT Monograph
SR 00
A1 Li, Sanxi
A1 Peitz, Martin
A1 Zhao, Xiaojian
T1 Worried about Adverse Product Effects? Information Disclosure and Consumer Awareness
YR 2010
FD 2010-05-12
VO 10-157
K1 Information disclosure
K1 informative advertising
K1 consumer awareness
AB Whether consumers are aware of potentially adverse product effects, is key for private and social incentives to disclose information. To obtain a better understanding of this issue we propose a simple monopoly model that highlights the conceptual difference between consumer unawareness and consumer uncertainty. We show that total surplus may be larger in an environment in which consumers are unaware of the potentially adverse effect. We also show that disclosing information whether a particular ingredient is harmful or not increases consumer surplus, but mandatory disclosure of the level of this ingredient may make consumers worse off.
T2 TSE Working Paper
PB TSE Working Paper
AV Published
LK https://publications.ut-capitole.fr/id/eprint/15036/
UL http://tse-fr.eu/pub/22665