Transparency and product variety
AbstractWe study long run effects of transparency on the consumer side in a differentiated market. Only some consumers know prices. Increasing transparency reduces the equilibrium price, profit and firm entry. This improves welfare and, in most cases, average consumer utility.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 102 (2009)
Issue (Month): 3 (March)
Contact details of provider:
Web page: http://www.elsevier.com/locate/ecolet
Market transparency Product differentiation Product variety Competition policy;
Other versions of this item:
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
- L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
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