Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/45347 
Year of Publication: 
2010
Series/Report no.: 
Ruhr Economic Papers No. 219
Publisher: 
Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI), Essen
Abstract: 
Including the entry decision in a Bertrand model with imperfectly informed consumers, we introduce a trade-off at the level of social welfare. On the one hand, market transparency is benefi cial when the number of firms is exogenously given. On the other, a higher degree of market transparency implies lower profits and hence makes it less attractive to enter the market in the first place. It turns out that the second effect dominates: too much market transparency has a detrimental effect on consumer surplus and on social welfare.
Subjects: 
market transparency
endogenous entry
homogenous products
JEL: 
D43
L13
L15
ISBN: 
978-3-86788-251-4
Document Type: 
Working Paper

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