Policy implications:
Price transparency isn’t universally good or bad. While it reduces search costs and obfuscation, it can also lead to price increases in some cases. Regulation needs to consider both demand-side and supply-side effects carefully.
Price transparency isn’t universally good or bad. While it reduces search costs and obfuscation, it can also lead to price increases in some cases. Regulation needs to consider both demand-side and supply-side effects carefully.
Comments
Check out the full paper: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5054765
We uncover a fascinating mechanism linking transparency to pricing strategies in digital markets. Feedback and thoughts are welcome!