Essays in behavioral industrial organization
This thesis aims to make an empirical contribution to the behavioral industrial organization literature. The purpose of the thesis is to examine the implications of bounded rationality of buyers for market outcomes. In particular, I examine how complexity affects buyers’ ability to make choices and whether sellers have incentives to supply excess complexity in markets. In this regard, I examine how prices and buyer surplus are affected by complexity in markets and also analyze the effects of increased competition in these markets where sellers can obfuscate buyers using complexity.