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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Year of publication:	2010
Authors:	Gu, Yiquan ; Wenzel, Tobias
Institutions:	Düsseldorf Institute for Competition Economics (DICE), Wirtschaftswissenschaftliche Fakultät
Subject:	Market Transparency \| Product Variety \| Salop Model

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Extent:	application/pdf
Series:	DICE Discussion Papers. - ISSN 2190-9938.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 04
Classification:	L13 - Oligopoly and Other Imperfect Markets ; L15 - Information and Product Quality; Standardization and Compatibility ; L40 - Antitrust Policy. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008694128