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http://hdl.handle.net/10419/41422
  
Title:Transparency, price-dependent demand and product variety PDF Logo
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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