TY  - UNPD
A1  - Kosfeld, Michael
A1  - Schüwer, Ulrich
T1  - Add-on pricing in retail financial markets and the fallacies of consumer education
T2  - SAFE working paper series ; No. 47
N2  - This paper explores consequences of consumer education on prices and welfare in retail financial markets when some consumers are naive about shrouded add-on prices and firms try to exploit it. Allowing for different information and pricing strategies we show that education is unlikely to push firms to disclose prices towards all consumers, which would be socially efficient. Instead, price discrimination emerges as a new equilibrium. Further, due to a feedback on prices, education that is good for consumers who become sophisticated may be bad for consumers who stay naive and even for the group of all consumers as a whole
T3  - SAFE working paper - 47 
KW  - consumer education
KW  - financial literacy
KW  - bounded rationality
KW  - competition
KW  - regulation
Y1  - 2014
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/33828
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-338282
UR  - http://ssrn.com/abstract=2418171
PB  - SAFE
CY  - Frankfurt am Main
ER  -