Market transparency and consumer search—Evidence from the German retail gasoline market.

We estimate a model of incomplete information price competition where consumers endogenously choose whether to use a price search website. We examine how consumer search and prices would change under different transparency regimes. We find that aggregate consumer welfare is maximized when the price...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 55; no. 4; pp. 573 - 603
Autor principal: Martin, Simon
Formato: Artículo
Publicado: Wiley-Blackwell Dec2024
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Market transparency and consumer search—Evidence from the German retail gasoline market.
      aug:
        au: Martin, Simon
        affil: Department of Economics, University of Vienna
      su:
        Consumption (Economics)
        Retail industry
        Prices
        Consumers
        Gas prices
      sug:
        subj:
          Consumption (Economics)
          Retail industry
          Prices
          Consumers
          All Other Miscellaneous Store Retailers (except Tobacco Stores)
          All other miscellaneous general merchandise stores
          All other miscellaneous store retailers (except beer and wine-making supplies stores)
          Gas prices
      keyword:
        awareness
        consideration sets
        consumer search
        market transparency
        retail gasoline prices
        awareness
        consideration sets
        consumer search
        market transparency
        retail gasoline prices
      ab: We estimate a model of incomplete information price competition where consumers endogenously choose whether to use a price search website. We examine how consumer search and prices would change under different transparency regimes. We find that aggregate consumer welfare is maximized when the price search website lists the lowest 20% of prices (i.e., one station in markets with less than five stations, and two stations in markets with more than five stations), with consumer expenditures falling by 1.5% relative to a regime where all are listed.
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      src: R
    language: English
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