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Too Much Information Sharing? Welfare Effects of Sharing Acquired Cost Information in Oligopoly


  • Juan José Ganuza

    () (Universitat Pompeu Fabra, Department of Economics and Business)

  • Jos Jansen

    (Max Planck Institute for Research on Collective Goods)


By using general information structures and precision criteria based on the dispersion of conditional expectations, we study how oligopolists’ information acquisition decisions may change the effects of information sharing on the consumer surplus. Sharing information about individual cost parameters gives the following trade-off in Cournot oligopoly. On the one hand, it decreases the expected consumer surplus for a given information precision, as the literature shows. On the other hand, information sharing increases the firms’ incentives to acquire information, and the consumer surplus increases in the precision of the firms’ information. Interestingly, the latter effect may dominate the former effect.

Suggested Citation

  • Juan José Ganuza & Jos Jansen, 2010. "Too Much Information Sharing? Welfare Effects of Sharing Acquired Cost Information in Oligopoly," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2010_40, Max Planck Institute for Research on Collective Goods.
  • Handle: RePEc:mpg:wpaper:2010_40

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    Cited by:

    1. Stroffolini, Francesca, 2012. "Access profit-sharing regulation with information acquisition and transmission," Research in Economics, Elsevier, vol. 66(2), pages 161-174.
    2. Thomas D. Jeitschko & Ting Liu & Tao Wang, 2016. "Information Acquisition, Signaling and Learning in Duopoly," Department of Economics Working Papers 16-07, Stony Brook University, Department of Economics.
    3. Kazunori Miwa, 2016. "Welfare Effects of Endogenous Information Acquisition and Disclosure in Duopoly Markets," Discussion Paper Series DP2016-17, Research Institute for Economics & Business Administration, Kobe University.

    More about this item


    Oligopoly; information acquisition; information sharing; Information structures; Consumer surplus;

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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