Transparency and prices with imperfect substitutes
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| Publication date | 2006 |
| Journal | Economics Letters |
| Volume | Issue number | 93 | 3 |
| Pages (from-to) | 398-404 |
| Number of pages | 7 |
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| Abstract |
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 |
| Document type | Article |
| Published at | https://doi.org/10.1016/j.econlet.2006.06.003 |
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