Firm prominence and price framing
研究双寡头市场中企业如何利用价格框架策略，分析企业显著性差异与消费者混淆的两种来源（框架差异与框架复杂性）的交互作用及其对均衡结果的影响。
This paper explores the strategic use of price framing in a duopoly where firms differ in their prominence and where both frame differentiation and frame complexity are sources of consumer confusion. It analyzes the interaction between the relative effectiveness of the two sources of consumer confusion and firms’ prominence levels, and its impact on equilibrium outcomes. A parametric condition on firms’ prominence delineates different equilibrium outcomes and synthesizes the interaction between firm prominence and consumer confusion. In equilibrium, firms do not always coordinate on the most effective source of confusion. The impact of consumer protection policy on market outcomes, especially consumer surplus, depends crucially on underlying market conditions, and can be ineffective or even detrimental to consumers.