Transparency and product variety
We 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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Elsevier, vol. 93(3), pages 398-404, December.
- Boone, J. & Potters, J.J.M., 2006. "Transparency and prices with imperfect substitutes," Other publications TiSEM 6a5b84ad-f159-4378-a8b9-1, Tilburg University, School of Economics and Management.
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- Vettas, Nikolaos, 2000. "On entry, exit, and coordination with mixed strategies," European Economic Review, Elsevier, vol. 44(8), pages 1557-1576, August.
- Corsetti, Giancarlo & Devereux, Michael P. & Guiso, Luigi & Hassler, John & Saint-Paul, Gilles & Sinn, Hans-Werner & Sturm, Jan-Egbert & Vives, Xavier, 2010. "The European economy," Munich Reprints in Economics 20104, University of Munich, Department of Economics.
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