Yiquan Gu, Tobias Wenzel
Abstract
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This paper revisits the relationship between transparency on the consumer side and product variety. We show that due to lower price-cost margins more transparency is welfare-improving. This result is achieved even though product variety may be reduced.
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This paper revisits the relationship between transparency on the consumer side and product variety. We show that due to lower price-cost margins more transparency is welfare-improving. This result is achieved even though product variety may be reduced.
Key concepts: Transparency (behavior), Variety (cybernetics), Product (mathematics), Welfare, Business, Economics, Microeconomics, Industrial organization