Ignorance is Bliss? Uncertainty About Product Valuation May Benefit Consumers

Posted: 19 Dec 2012 Last revised: 12 Jul 2013

See all articles by Tarcisio da Graca

Tarcisio da Graca

Université du Québec en Outaouais

Robert T. Masson

Cornell University

Date Written: November 26, 2012

Abstract

Product information which is beneficial for an individual consumer may hurt if disseminated widely. Even with rational expectations a fallacy of composition may occur if information leads to demand and price increases.

Keywords: information, rational expectations, advertising, product reviews

JEL Classification: D8, M3

Suggested Citation

da Graca, Tarcisio and Masson, Robert T., Ignorance is Bliss? Uncertainty About Product Valuation May Benefit Consumers (November 26, 2012). Applied Economics Letters, Vol. 20, No. 9, 897-902, February 2013, Available at SSRN: https://ssrn.com/abstract=2190458

Tarcisio Da Graca (Contact Author)

Université du Québec en Outaouais ( email )

Case postale 1250
succursale Hull
Gatineau, Québec J8X 3X7
Canada

Robert T. Masson

Cornell University ( email )

Ithaca, NY 14853
United States

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