Market transparency and Bertrand competition
AbstractWe investigate the effects of market transparency on prices in the Bertrand duopoly model for both the cases of strategic complementarities and strategic substitutes. For the former class of games “conventional wisdom” concerning prices is conﬁrmed, since they decrease. The consumers are always better off with higher transparency but changes in ﬁrm's proﬁts are ambiguous. For the latter class of games, an increase in market transparency may lead to an increase in one of the prices, which implies ambiguity in consumers' utility and ﬁrms' proﬁts.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2006037.
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Bertrand duopoly; market transparency;
Find related papers by JEL classification:
- 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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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- MaÅ?gorzata Knauff
by Metablog Obserwatora Finansowego in Obserwator Finansowy on 2009-12-10 11:59:58
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