Transparency, price-dependent demand and product variety

Arbeitspapier

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.

Object Details

• ISBN: 978-3-86304-003-1
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: DICE Discussion Paper ; No. 04

Classification and Topics

• Classification: Wirtschaft ; Oligopoly and Other Imperfect Markets ; Information and Product Quality; Standardization and Compatibility ; Antitrust Issues and Policies: General
• Subject: Market Transparency ; Product Variety ; Salop Model ; Produktdifferenzierung ; Marktstruktur ; Information ; Marktmacht ; Wohlfahrtseffekt ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gu, Yiquan ; Wenzel, Tobias
• Event: Veröffentlichung
• (who): Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)
• (where): Düsseldorf
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/41422
• Last update: 10.03.2025, 11:42 AM CET