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Firm prominence and price framing

Ioana Chioveanu et al.

Journal of Economic Behavior and Organization2026https://doi.org/10.1016/j.jebo.2026.107458article
AJG 3ABDC A*
Weight
0.50

Abstract

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.

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https://doi.org/https://doi.org/10.1016/j.jebo.2026.107458

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@article{ioana2026,
  title        = {{Firm prominence and price framing}},
  author       = {Ioana Chioveanu et al.},
  journal      = {Journal of Economic Behavior and Organization},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1016/j.jebo.2026.107458},
}

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Firm prominence and price framing

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.