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Düsseldorf Institute for Competition Economics (DICE), University of Düsseldorf >
DICE Discussion Paper, Düsseldorf Institute for Competition Economics (DICE) >
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http://hdl.handle.net/10419/41422
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| Title: | | Transparency, price-dependent demand and product variety  |
| Authors: | | Gu, Yiquan Wenzel, Tobias |
| Issue Date: | | 2010 |
| Series/Report no.: | | DICE discussion paper 04 |
| Abstract: | | 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. |
| Subjects: | | Market Transparency Product Variety Salop Model |
| JEL: | | L13 L15 L40 |
| ISBN: | | 978-3-86304-003-1 |
| Document Type: | | Working Paper |
| Appears in Collections: | | DICE Discussion Paper, Düsseldorf Institute for Competition Economics (DICE)
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