Information, market power, and price volatility.

We consider demand function competition with a finite number of agents and private information. We show that any degree of market power can arise in the unique equilibrium under an information structure that is arbitrarily close to complete information. Regardless of the number of agents and the cor...

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Bibliographic Details

Published in:	RAND Journal of Economics (Wiley-Blackwell) Vol. 52; no. 1; pp. 125 - 151
Main Authors:	Bergemann, Dirk, Heumann, Tibor, Morris, Stephen
Format:	Article
Published:	Wiley-Blackwell Mar2021
Subjects:	Market power Demand function
Online Access:	View this record in EBSCOhost