In brief... Confusopoly: how mobile phone companies use product complexity to raise prices

Confusing consumers can be profitable for companies, particularly in a highly competitive market. Christos Genakos, Tobias Kretschmer and Ambre Nicolle find evidence that, for a period, phone operators decreased the transparency of their mobile plans, creating confusion among users and, at the same time, pushing up prices.

Christos Genakos, Tobias Kretschmer and Ambre Nicolle

21 June 2022     Paper Number CEPCP634

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This work is published under POID and the CEP's Growth programme.