IDEAS home Printed from https://ideas.repec.org/h/spr/lnechp/978-3-642-02956-1_9.html
   My bibliography  Save this book chapter

Social Learning and Pricing Obfuscation

In: Artificial Economics

Author

Listed:
  • Maciej Latek

    (George Mason University)

  • Bogumil Kaminski

    (Warsaw School of Economics)

Abstract

We examine markets in which companies are allowed to obfuscate prices and customers are forced to rely on their direct experience and signals they receive from social networks to make purchasing decisions. We compare interventions by public regulators that impose constraints on the amount of price obfuscation with those that augment customers’ cognitive capacities in order to determine which class of policies enhances social welfare the most in such a setting. We implement the strategic behavior of companies by a recursive simulation of n-th order rationality and extend the Experience Weighted Attractions framework to incorporate information from social networks for adaptive customers. Therefore, we search for market designs that are robust with respect to bounded rationality of companies and customers.

Suggested Citation

  • Maciej Latek & Bogumil Kaminski, 2009. "Social Learning and Pricing Obfuscation," Lecture Notes in Economics and Mathematical Systems, in: Cesáreo Hernández & Marta Posada & Adolfo López-Paredes (ed.), Artificial Economics, chapter 0, pages 103-114, Springer.
    • Handle: RePEc:spr:lnechp:978-3-642-02956-1_9
    DOI: 10.1007/978-3-642-02956-1_9
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Timothy J. Richards & Gordon J. Klein & Celine Bonnet & Zohra Bouamra-Mechemache, 2020. "Strategic Obfuscation and Retail Pricing," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(4), pages 859-889, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:lnechp:978-3-642-02956-1_9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.