Market Transparency and Product Differentiation

Christian Schultz ()

No 2002-02, CIE Discussion Papers from University of Copenhagen. Department of Economics. Centre for Industrial Economics

Abstract: In a Hotelling market with endogenous choice of product characteristics increasing market transparency on the consumer side leads to less product differentiation, and lower prices and profits. This is welfare improving for all consumers and total surplus increases.

Keywords: market transparency; product differentiation; competition policy (search for similar items in EconPapers)
JEL-codes: L13 L15 L40 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2002-11
New Economics Papers: this item is included in nep-com and nep-ind
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