Transparency, entry, and productivity

Yiquan Gu and Tobias Wenzel

Economics Letters, 2012, vol. 115, issue 1, 7-10

Abstract: This paper studies the relationship between transparency on the consumer side and productivity of firms. We show that more transparent markets are characterized by higher average productivity as firms with low productivity abstain from entering these markets.

Keywords: Market transparency; Firm productivity; Salop model; Heterogeneous firms (search for similar items in EconPapers)
JEL-codes: D24 L13 L15 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:115:y:2012:i:1:p:7-10

DOI: 10.1016/j.econlet.2011.11.016

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