Sharing of Cost Related Information Can Increase Consumer Welfare Under Risk-Aversion

6 Pages Posted: 17 Aug 2015

See all articles by Murat C. Mungan

Murat C. Mungan

George Mason University - Antonin Scalia Law School, Faculty

Date Written: August 15, 2015

Abstract

The existing literature generally suggests that the sharing of firm-specific information related to firms' costs of production unambiguously reduces consumer welfare. This note shows that this result does not hold when consumers and least one firm is risk-averse, and consumer welfare is measured by the sum of consumers' expected utilities.

Keywords: Information Sharing, Cost Uncertainty, Risk-Aversion, Consumer Welfare, Firm-Specific Information

Suggested Citation

Mungan, Murat C., Sharing of Cost Related Information Can Increase Consumer Welfare Under Risk-Aversion (August 15, 2015). FSU College of Law, Public Law Research Paper No. 768; FSU College of Law, Law, Business & Economics Paper No. 15-21. Available at SSRN: https://ssrn.com/abstract=2644962 or http://dx.doi.org/10.2139/ssrn.2644962

Murat C. Mungan (Contact Author)

George Mason University - Antonin Scalia Law School, Faculty ( email )

3301 Fairfax Drive
Arlington, VA 22201
United States

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