Confused consumers drive transparency and price competition in markets.
The article explores how companies may confuse customers with complex product information, but customers prefer simpler options. This confusion leads to competition not only in prices but also in obfuscation. Surprisingly, even if simple products are pricier, companies can earn less when customers choose simplicity. Profit levels may not always be lower in markets with less confusion. To get rid of confusion, some customers must always be confused, and efforts to educate customers can actually increase confusion.