European Business Schools Librarian's Group
Working Papers,
Copenhagen Business School, Department of Economics
No 06-2001: MARKET TRANSPARENCY AND COMPETITION POLICY
H. Peter Møllgaard and Per Baltzer Overgaard
Additional contact information
H. Peter Møllgaard: Department of Economics, Copenhagen Business School, Postal: Department of Economics, Copenhagen Business School, Solbjerg Plads 3 C, 5. sal, DK-2000 Frederiksberg, Denmark
Per Baltzer Overgaard: University of Aarhus, Postal: Centre for Industrial Economics and, Department of Economics, University of Aarhus, DK-8000 Aarhus C, Denmark
Abstract: We survey some of the literature on the effects of improved market transparency on competition in ologopoly. Generally, improved transparency from the perspective of irms makes detection of deviations from tacitly collusive agreements easier, thus facilitating oligopolistic coordination. On the other hand, improved transparency from the perspective of consumers, particularly in terms of easier comparability of goods characteristics, has ambiguous effects: More elastic demands make deviations from collusive prices more profitable to firms in the short run, but they also make future retaliation by rivals more severe. Which of these forces will dominate in a dynamic oligopoly competition is shown to depend on the market-specifics. In light of the theoretical results, we discuss the likely effects on inter-firm competition of information exchange and online trading institutions as well as the American and European competition policy attitude towards market transparency.
Keywords: Market transparency; Repeated oligopoly; Secret price-cutting; Customer switching
37 pages, July 30, 2001
Full text files
7567
- Copenhagen Business School, Department of Economics
- Ordering Working Papers
- Home page for this series
Questions (including download problems) about the papers in this series should be directed to Lars Nondal ()
Report other problems with accessing this service to Sune Karlsson ().
RePEc:hhs:cbsnow:2001_006This page generated on 2024-11-13 04:36:03.