Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/129581 
Year of Publication: 
2014
Series/Report no.: 
Working Paper Series No. 14-28
Publisher: 
University of Mannheim, Department of Economics, Mannheim
Abstract: 
Whether consumers are aware of potentially adverse product effects is key to private and social incentives to disclose information about undesirable product characteristics. In a monopoly model with a mix of aware and unaware consumers, a larger share of unaware consumers makes information disclosure less likely to occur. Since the firm is not interested in releasing information to unaware consumers, a more precise targeting technology that allows the firm to better keep unaware consumers in the dark leads to more disclosure. A regulator may want to intervene in this market and impose mandatory disclosure rules.
Subjects: 
Information disclosure
informative advertising
targeted advertising
consumer awareness
behavioral bias
non-common prior
consumer protection
behavioral industrial organization
JEL: 
L51
M38
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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