IDEAS home Printed from https://ideas.repec.org/p/nys/sunysb/01-06.html
   My bibliography  Save this paper

Entry and Exchanges of Cost Information

Author

Listed:
  • Olivier Armantier, Oliver Richard

Abstract

The literature on exchanges of information has ignored firms' entry decisions. Yet, the Federal Trade Commission recently expressed concerns that exchanges of information in business-to-business electronic platforms would adversely impact entry and, thus, consumers. When entry decisions are endogenized in a competitive Cournot model with cost uncertainty, we find results that contrast sharply with current thinking on the welfare consequences of information sharing.

Suggested Citation

  • Olivier Armantier, Oliver Richard, 2001. "Entry and Exchanges of Cost Information," Department of Economics Working Papers 01-06, Stony Brook University, Department of Economics.
    • Handle: RePEc:nys:sunysb:01-06
    as

    Download full text from publisher

    File URL: http://www.stonybrook.edu/commcms/economics/research/papers/2001/01-06.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Masahiro Okuno-Fujiwara & Andrew Postlewaite & Kotaro Suzumura, 1990. "Strategic Information Revelation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(1), pages 25-47.
    2. Esther Gal-or, 1986. "Information Transmission—Cournot and Bertrand Equilibria," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(1), pages 85-92.
    3. Gal-Or, Esther, 1985. "Information Sharing in Oligopoly," Econometrica, Econometric Society, vol. 53(2), pages 329-343, March.
    4. Berry, Steven T, 1992. "Estimation of a Model of Entry in the Airline Industry," Econometrica, Econometric Society, vol. 60(4), pages 889-917, July.
    5. Amir Ziv, 1993. "Information Sharing in Oligopoly: The Truth-Telling Problem," RAND Journal of Economics, The RAND Corporation, vol. 24(3), pages 455-465, Autumn.
    6. Maura P. Doyle & Christopher M. Snyder, 1999. "Information Sharing and Competition in the Motor Vehicle Industry," Journal of Political Economy, University of Chicago Press, vol. 107(6), pages 1326-1364, December.
    7. Dov Fried, 1984. "Incentives for Information Production and Disclosure in a Duopolistic Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(2), pages 367-381.
    8. Malueg, David A. & Tsutsui, Shunichi O., 1998. "Distributional assumptions in the theory of oligopoly information exchange1," International Journal of Industrial Organization, Elsevier, vol. 16(6), pages 785-797, November.
    9. Calmfors, Lars & Corsetti, Giancarlo & Devereux, Michael P. & Saint-Paul, Gilles & Sinn, Hans-Werner & Sturm, Jan-Egbert & Vives, Xavier, 2008. "Industrial policy," Munich Reprints in Economics 20014, University of Munich, Department of Economics.
    10. Raith, Michael, 1996. "A General Model of Information Sharing in Oligopoly," Journal of Economic Theory, Elsevier, vol. 71(1), pages 260-288, October.
    11. Carl Shapiro, 1986. "Exchange of Cost Information in Oligopoly," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(3), pages 433-446.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Goltsman, Maria & Pavlov, Gregory, 2014. "Communication in Cournot oligopoly," Journal of Economic Theory, Elsevier, vol. 153(C), pages 152-176.
    2. Medín, J. Andrés Faíña & Rodríguez, Jesús López & Rodríguez, José López, 2003. "Information Exchanges in Cournot Duopolies," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 57(1), January.
    3. Yin, Xundong & Wang, Sophie Xuefei & Lu, Yuanzhu & Yan, Jianye, 2023. "Endogenous information acquisition and disclosure of private information in a duopoly," Economic Modelling, Elsevier, vol. 126(C).
    4. Piccolo, Salvatore & Pagnozzi, Marco, 2013. "Information sharing between vertical hierarchies," Games and Economic Behavior, Elsevier, vol. 79(C), pages 201-222.
    5. António Brandão & Joana Pinho, 2015. "Asymmetric Information And Exchange Of Information About Product Differentiation," Bulletin of Economic Research, Wiley Blackwell, vol. 67(2), pages 166-185, April.
    6. Young-Ro Yoon, 2008. "Strategic Disclosure of Valuable Information within Competitive Environments," CAEPR Working Papers 2008-022, Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington.
    7. Armantier, Olivier & Richard, Oliver, 2003. "Exchanges of Cost Information in the Airline Industry," RAND Journal of Economics, The RAND Corporation, vol. 34(3), pages 461-477, Autumn.
    8. Chang, Chun-Hao & Prakash, Arun J. & Yeh, Shu, 2004. "Sale of monopoly information and behavior of rivaling clients: A theoretical perspective," Review of Financial Economics, Elsevier, vol. 13(3), pages 283-304.
    9. Tao Wang, 2020. "Competitive Intelligence and Disclosure of Cost Information in Duopoly," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(3), pages 665-699, November.
    10. Juan-José Ganuza & Jos Jansen, 2013. "Too Much Information Sharing? Welfare Effects of Sharing Acquired Cost Information in Oligopoly," Journal of Industrial Economics, Wiley Blackwell, vol. 61(4), pages 845-876, December.
    11. Bruno Carballa Smichowski & Yassine Lefouili & Andrea Mantovani & Carlo Reggiani, 2025. "Data Sharing or Analytics Sharing ?," Working Papers hal-04956937, HAL.
    12. Hyoduk Shin & Tunay I. Tunca, 2010. "Do Firms Invest in Forecasting Efficiently? The Effect of Competition on Demand Forecast Investments and Supply Chain Coordination," Operations Research, INFORMS, vol. 58(6), pages 1592-1610, December.
    13. David Spector, 2021. "Market share transparency, signaling and welfare: Cournot and Bertrand," PSE Working Papers halshs-02946654, HAL.
    14. Hao-Chang Sung & Chunsheng Yuan, 2017. "Biased Voluntary Disclosure, Earnings Target, And Product Market Competition," Annals of Financial Economics (AFE), World Scientific Publishing Co. Pte. Ltd., vol. 12(03), pages 1-20, September.
    15. Clark, Derek J. & Sand, Jan Yngve, 2010. "Endogenous technology sharing in R&D intensive industries," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 4, pages 1-48.
    16. Lagerlof, Johan N.M., 2007. "Insisting on a non-negative price: Oligopoly, uncertainty, welfare, and multiple equilibria," International Journal of Industrial Organization, Elsevier, vol. 25(4), pages 861-875, August.
    17. Krishnan S. Anand & Manu Goyal, 2009. "Strategic Information Management Under Leakage in a Supply Chain," Management Science, INFORMS, vol. 55(3), pages 438-452, March.
    18. Jeremy Bertomeu & John Harry Evans & Mei Feng & Ayung Tseng, 2021. "Tacit Collusion and Voluntary Disclosure: Theory and Evidence from the U.S. Automotive Industry," Management Science, INFORMS, vol. 67(3), pages 1851-1875, March.
    19. Karakoç, Gülen & Pagnozzi, Marco & Piccolo, Salvatore, 2022. "The value of transparency in dynamic contracting with entry," International Journal of Industrial Organization, Elsevier, vol. 85(C).
    20. Stadler, Manfred & Hornig, Stephan O., 2000. "Wettbewerb bei unvollständiger Information: Informationsaustausch oder stillschweigende Kollusion?," Tübinger Diskussionsbeiträge 177, University of Tübingen, School of Business and Economics.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nys:sunysb:01-06. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/edstous.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.