Konferenzbeitrag
The Inefficiency of Market Transparency - A Model with Endogenous Entry
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 beneficial 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.
- Language
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Englisch
- Bibliographic citation
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Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Oligopolistic Competition and Network Formation ; No. F9-V2
- Classification
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Wirtschaft
Oligopoly and Other Imperfect Markets
Information and Product Quality; Standardization and Compatibility
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
- Subject
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Market transparency
Endogenous entry
Homogenous products
- Event
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Geistige Schöpfung
- (who)
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Gu, Yiquan
Hehenkamp, Burkhard
- Event
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Veröffentlichung
- (who)
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Verein für Socialpolitik
- (where)
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Frankfurt a. M.
- (when)
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2010
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Konferenzbeitrag
Associated
- Gu, Yiquan
- Hehenkamp, Burkhard
- Verein für Socialpolitik
Time of origin
- 2010