| Publication type: | Article in scientific journal |
| Type of review: | Peer review (publication) |
| Title: | Preferences, confusion and competition |
| Authors: | Hefti, Andreas Liu, Shuo Schmutzler, Armin |
| et. al: | No |
| DOI: | 10.1093/ej/ueac009 |
| Published in: | The Economic Journal |
| Volume(Issue): | 132 |
| Issue: | 645 |
| Page(s): | 1852 |
| Pages to: | 1881 |
| Issue Date: | 2022 |
| Publisher / Ed. Institution: | Oxford University Press |
| ISSN: | 0013-0133 1468-0297 |
| Language: | English |
| Subject (DDC): | 330: Economics |
| Abstract: | Existing literature has argued that firms benefit from confusing consumers of homogeneous goods. This paper shows that this insight generally breaks down with differentiated goods and heterogeneous preferences: with polarised taste distributions, firms fully educate consumers. In cases where firms nevertheless confuse consumers, the welfare consequences are worse than for homogeneous goods, as consumers choose dominated options. Similar insights are also obtained for political contests, in which candidates compete for voters with heterogeneous preferences: parties choose ambiguous platforms only when preferences are ‘indecisive’, featuring a concentration of indifferent voters. |
| URI: | https://digitalcollection.zhaw.ch/handle/11475/28309 |
| Fulltext version: | Published version |
| License (according to publishing contract): | Licence according to publishing contract |
| Departement: | School of Management and Law |
| Organisational Unit: | Center for Labor, Digital and Regional Economics (CLDR) |
| Appears in collections: | Publikationen School of Management and Law |
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Hefti, A., Liu, S., & Schmutzler, A. (2022). Preferences, confusion and competition. The Economic Journal, 132(645), 1852–1881. https://doi.org/10.1093/ej/ueac009
Hefti, A., Liu, S. and Schmutzler, A. (2022) ‘Preferences, confusion and competition’, The Economic Journal, 132(645), pp. 1852–1881. Available at: https://doi.org/10.1093/ej/ueac009.
A. Hefti, S. Liu, and A. Schmutzler, “Preferences, confusion and competition,” The Economic Journal, vol. 132, no. 645, pp. 1852–1881, 2022, doi: 10.1093/ej/ueac009.
HEFTI, Andreas, Shuo LIU und Armin SCHMUTZLER, 2022. Preferences, confusion and competition. The Economic Journal. 2022. Bd. 132, Nr. 645, S. 1852–1881. DOI 10.1093/ej/ueac009
Hefti, Andreas, Shuo Liu, and Armin Schmutzler. 2022. “Preferences, Confusion and Competition.” The Economic Journal 132 (645): 1852–81. https://doi.org/10.1093/ej/ueac009.
Hefti, Andreas, et al. “Preferences, Confusion and Competition.” The Economic Journal, vol. 132, no. 645, 2022, pp. 1852–81, https://doi.org/10.1093/ej/ueac009.
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