Entry and Exchanges of Cost Information

Oliver Richard Olivier Armantier ()

Department of Economics Working Papers from Stony Brook University, Department of Economics

Abstract: The literature on exchanges of information has ignored firms' entry decisions. Yet, the Federal Trade Commission recently expressed concerns that exchanges of information in business-to-business electronic platforms would adversely impact entry and, thus, consumers. When entry decisions are endogenized in a competitive Cournot model with cost uncertainty, we find results that contrast sharply with current thinking on the welfare consequences of information sharing.

Date: 2001
New Economics Papers: this item is included in nep-ent and nep-gth
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Persistent link: https://EconPapers.repec.org/RePEc:nys:sunysb:01-06

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