作者：Johnen, Johannes
作者单位：Universite Catholique Louvain
摘要：In many deceptive markets, firms design contracts to exploit mistakes of naive consumers. These contracts also attract less-profitable sophisticated consumers. I study such markets when firms compete repeatedly. By observing their customers' usage patterns, firms acquire private information about their level of naivete. First, I find that private information on naivete mitigates competition and is of great value even with homogeneous products. Second, competition between initially symmetricall...
