- Transparency and prices with imperfect substitutes
- Economics Letters
- Volume | Issue number
- 93 | 3
- Pages (from-to)
- Number of pages
- Document type
- Faculty of Economics and Business (FEB)
- Amsterdam School of Economics Research Institute (ASE-RI)
- We show that an increase in consumer transparency may increase prices if goods are imperfect substitutes. If the consumers
have more information about the goods that are available and about corresponding prices they will increase their demand. The
effect of this on prices may override the competition enhancing effect of transparency.
Keywords: Transparency; Demand effect; Competition effect
JEL classification codes: D40; L10
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