Information, Prices and Buyer Entry

2026

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AI-generated summary

This paper challenges the conventional wisdom that information transparency always lowers prices by introducing the concept of buyer entry.

* Examines how information transparency affects prices and markups in markets with costly buyer entry.
* Introduces a model where increased information transparency can lead to higher prices due to intensified buyer competition.
* Explores alternative entry specifications, including buyer entry with a participation cap and seller free entry, to understand their impact on market outcomes.

Tags: information transparency, buyer entry, price competition, market structure, search theory

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