Transparency, price-dependent demand and product variety
This paper revisits the relationship between transparency on the consumer side and product variety as analyzed in Schultz (2009). We identify two welfare effects of transparency. More transparency decreases price-cost margins which is beneficial forwelfare. On the other hand, more transparency reduces variety which can be positive or negative for welfare. Overall, more transparency is always welfareimproving.
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- Christian Schultz, 2007.
"Transparency and Product Variety,"
CIE Discussion Papers
2007-13, University of Copenhagen. Department of Economics. Centre for Industrial 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.
- 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, 2012.
"Price-dependent demand in spatial models,"
DICE Discussion Papers
43, Düsseldorf Institute for Competition Economics (DICE), University of Düsseldorf.
- Gu, Yiquan & Wenzel, Tobias, 2007.
"A Note on the Excess Entry Theorem in Spatial Models with Elastic Demand,"
Ruhr Economic Papers
33, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
- Gu, Yiquan & Wenzel, Tobias, 2009. "A note on the excess entry theorem in spatial models with elastic demand," International Journal of Industrial Organization, Elsevier, vol. 27(5), pages 567-571, September.
- Schultz, Christian, 2005. "Transparency on the consumer side and tacit collusion," European Economic Review, Elsevier, vol. 49(2), pages 279-297, February.
- Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
- Varian, Hal R, 1980. "A Model of Sales," American Economic Review, American Economic Association, vol. 70(4), pages 651-59, September.
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