Transparency, price-dependent demand and product variety
This paper revisits the relationship between transparency on the consumer side and product variety. We show that due to lower price-cost margins more transparency is welfare-improving. This result is achieved even though product variety may be reduced.
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- Schultz, Christian, 2005. "Transparency on the consumer side and tacit collusion," European Economic Review, Elsevier, vol. 49(2), pages 279-297, February.
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- Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
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43, Düsseldorf Institute for Competition Economics (DICE), University of Düsseldorf.
- Gu, Yiquan & Wenzel, Tobias, 2009.
"Product variety, price elasticity of demand and fixed cost in spatial models,"
FAU Discussion Papers in Economics
03/2009, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
- Gu, Yiquan & Wenzel, Tobias, 2009. "Product Variety, Price Elasticity of Demand and Fixed Cost in Spatial Models," Ruhr Economic Papers 92, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
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