Sharing of Cost Related Information Can Increase Consumer Welfare Under Risk-aversion
Document Type
Article
Publication Date
4-2019
Journal Title
Review of Law & Economics
ISSN
1555-5879
DOI
10.1515/rle-2019-0002
Abstract
Existing literature suggests that the sharing of firm-specific information related to costs of production among Cournot competitors unambiguously reduces consumer welfare. This article shows that this result does not hold when at least one firm is risk-averse. Perhaps more importantly, if consumers are sufficiently risk-averse allowing information sharing leads to a Pareto improvement.
First Page
20190002
Volume Number
15
Issue Number
2
Publisher
De Gruyter
Recommended Citation
Murat C. Mungan,
Sharing of Cost Related Information Can Increase Consumer Welfare Under Risk-aversion,
15
Rev. L. & Econ.
20190002
(2019).
Available at:
https://scholarship.law.tamu.edu/facscholar/1849
