Transparency, Prices and Welfare with Imperfect Substitutes

Markets that are not completely transparent feature complex comparative statics with respect to the effect of number of firms, elasticity of substitution between goods and degree of transparency on equilibrium prices.The main result is that the following 'common wisdom' is incorrect: more transparent markets always feature lower prices, higher consumer welfare and lower price disperion.

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Year of publication:	2002
Authors:	boone, jan ; Potters, Jan
Institutions:	Tilburg University, Center for Economic Research
Subject:	market structure \| prices \| welfare

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Extent:	application/pdf
Series:	Discussion Paper.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series CentER Discussion Paper Number 2002-7
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011092472