---
_id: '2709'
abstract:
- lang: eng
  text: 'This paper studies welfare consequences of consumer-side market transparency
    with endogenous entry of firms. Different from most studies, we consider the unique
    symmetric entry equilibrium, which is in mixed strategies. We identify two effects
    of market transparency on welfare: a competition effect and a novel market-structure
    effect. We show, surprisingly, that for almost all demand functions the negative
    market-structure effect eventually dominates the positive competition effect as
    the market becomes increasingly transparent. Consumer-side market transparency
    can therefore be socially excessive even without collusion. The only exception
    among commonly used demand functions is the set of constant demand functions. '
article_type: original
author:
- first_name: Yiquan
  full_name: Gu, Yiquan
  last_name: Gu
- first_name: Burkhard
  full_name: Hehenkamp, Burkhard
  id: '37339'
  last_name: Hehenkamp
citation:
  ama: Gu Y, Hehenkamp B. Too Much of a Good Thing? Welfare Consequences of Market
    Transparency. <i>Journal of Institutional and Theoretical Economics JITE</i>.
    2014;170(2):225-248. doi:<a href="https://doi.org/10.1628/093245614x13895979380392">10.1628/093245614x13895979380392</a>
  apa: Gu, Y., &#38; Hehenkamp, B. (2014). Too Much of a Good Thing? Welfare Consequences
    of Market Transparency. <i>Journal of Institutional and Theoretical Economics
    JITE</i>, <i>170</i>(2), 225–248. <a href="https://doi.org/10.1628/093245614x13895979380392">https://doi.org/10.1628/093245614x13895979380392</a>
  bibtex: '@article{Gu_Hehenkamp_2014, title={Too Much of a Good Thing? Welfare Consequences
    of Market Transparency}, volume={170}, DOI={<a href="https://doi.org/10.1628/093245614x13895979380392">10.1628/093245614x13895979380392</a>},
    number={2}, journal={Journal of Institutional and Theoretical Economics JITE},
    publisher={Mohr Siebeck}, author={Gu, Yiquan and Hehenkamp, Burkhard}, year={2014},
    pages={225–248} }'
  chicago: 'Gu, Yiquan, and Burkhard Hehenkamp. “Too Much of a Good Thing? Welfare
    Consequences of Market Transparency.” <i>Journal of Institutional and Theoretical
    Economics JITE</i> 170, no. 2 (2014): 225–48. <a href="https://doi.org/10.1628/093245614x13895979380392">https://doi.org/10.1628/093245614x13895979380392</a>.'
  ieee: Y. Gu and B. Hehenkamp, “Too Much of a Good Thing? Welfare Consequences of
    Market Transparency,” <i>Journal of Institutional and Theoretical Economics JITE</i>,
    vol. 170, no. 2, pp. 225–248, 2014.
  mla: Gu, Yiquan, and Burkhard Hehenkamp. “Too Much of a Good Thing? Welfare Consequences
    of Market Transparency.” <i>Journal of Institutional and Theoretical Economics
    JITE</i>, vol. 170, no. 2, Mohr Siebeck, 2014, pp. 225–48, doi:<a href="https://doi.org/10.1628/093245614x13895979380392">10.1628/093245614x13895979380392</a>.
  short: Y. Gu, B. Hehenkamp, Journal of Institutional and Theoretical Economics JITE
    170 (2014) 225–248.
date_created: 2018-05-08T17:37:21Z
date_updated: 2022-01-06T06:57:33Z
department:
- _id: '280'
- _id: '475'
doi: 10.1628/093245614x13895979380392
intvolume: '       170'
issue: '2'
page: 225-248
publication: Journal of Institutional and Theoretical Economics JITE
publication_identifier:
  issn:
  - 0932-4569
publication_status: published
publisher: Mohr Siebeck
status: public
title: Too Much of a Good Thing? Welfare Consequences of Market Transparency
type: journal_article
user_id: '37339'
volume: 170
year: '2014'
...