Wednesday, February 8, 2012
Posted by D. Daniel Sokol
Yiquan Gu (University of Liverpool, Management School) and Tobias Wenzel (Dusseldorf Institute for Competition Economics) address Transparency, entry, and productivity.
ABSTRACT: This paper studies the relationship between transparency on the consumer side and productivity of firms. We show that more transparent markets are characterized by higher average productivity as firms with low productivity abstain from entering these markets.