Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/41422
Authors: 
Gu, Yiquan
Wenzel, Tobias
Year of Publication: 
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

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