Transparency, price-dependent demand and product variety

Research, Preprint OPEN
Gu, Yiquan; Wenzel, Tobias;
(2010)
  • Publisher: Düsseldorf: Düsseldorf Institute for Competition Economics (DICE)
  • Subject: Wohlfahrtseffekt | Marktmacht | L40 | Market Transparency,Product Variety,Salop Model | L13 | L15 | Produktdifferenzierung | Salop Model | Market Transparency | Marktstruktur | Information | Theorie | Product Variety
    • jel: jel:L40 | jel:L15 | jel:L13
      ddc: ddc:330

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... View more
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