Transparency, Prices and Welfare with Imperfect Substitutes

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Abstract

Markets that are not completely transparent feature complex comparative statics with respect to the effect of number of firms, elasticity of substitution between goods and degree of transparency on equilibrium prices.The main result is that the following 'common wisdom' is incorrect: more transparent markets always feature lower prices, higher consumer welfare and lower price disperion.
Original languageEnglish
Place of PublicationTilburg
PublisherMicroeconomics
Number of pages26
Volume2002-7
Publication statusPublished - 2002

Publication series

NameCentER Discussion Paper
Volume2002-7

Fingerprint

Price transparency
Substitute
Elasticity of substitution
Comparative statics
Equilibrium price
Consumer welfare
Wisdom
Transparency

Keywords

  • market structure
  • prices
  • welfare

Cite this

Boone, J., & Potters, J. J. M. (2002). Transparency, Prices and Welfare with Imperfect Substitutes. (CentER Discussion Paper; Vol. 2002-7). Tilburg: Microeconomics.
Boone, J. ; Potters, J.J.M. / Transparency, Prices and Welfare with Imperfect Substitutes. Tilburg : Microeconomics, 2002. (CentER Discussion Paper).
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Boone, J & Potters, JJM 2002 'Transparency, Prices and Welfare with Imperfect Substitutes' CentER Discussion Paper, vol. 2002-7, Microeconomics, Tilburg.

Transparency, Prices and Welfare with Imperfect Substitutes. / Boone, J.; Potters, J.J.M.

Tilburg : Microeconomics, 2002. (CentER Discussion Paper; Vol. 2002-7).

Research output: Working paperDiscussion paperOther research output

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KW - market structure

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KW - welfare

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Boone J, Potters JJM. Transparency, Prices and Welfare with Imperfect Substitutes. Tilburg: Microeconomics. 2002. (CentER Discussion Paper).