When OMC came out with the SST (Stainless Steel Teflon) prop.....1973 to my recollection, at least that's when I became aware of it and bought one, Mercury already had the flared tip to accomplish what jimmbo said. One would initially think that OMC had to be different for competitive reasons, or possibly Merc. had a patent still in force for it. Later on most of the OEM alum. lineup had the divergence ring too.
Around here, on bass boats especially, on the SST, lots ran without it when they would get knocked off from logs while fishing the rough and apparently nobody cared enough to replace them, so they must have been overkill or were provided for some extreme circumstance, ventilation problems for some applications?????