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Entry and Exchanges of Cost Information

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  • Olivier Armantier, Oliver Richard

Abstract

The literature on exchanges of information has ignored firms' entry decisions. Yet, the Federal Trade Commission recently expressed concerns that exchanges of information in business-to-business electronic platforms would adversely impact entry and, thus, consumers. When entry decisions are endogenized in a competitive Cournot model with cost uncertainty, we find results that contrast sharply with current thinking on the welfare consequences of information sharing.

Suggested Citation

  • Olivier Armantier, Oliver Richard, 2001. "Entry and Exchanges of Cost Information," Department of Economics Working Papers 01-06, Stony Brook University, Department of Economics.
    • Handle: RePEc:nys:sunysb:01-06
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    File URL: http://www.stonybrook.edu/commcms/economics/research/papers/2001/01-06.pdf
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    References listed on IDEAS

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    1. Masahiro Okuno-Fujiwara & Andrew Postlewaite & Kotaro Suzumura, 1990. "Strategic Information Revelation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(1), pages 25-47.
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    7. Dov Fried, 1984. "Incentives for Information Production and Disclosure in a Duopolistic Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(2), pages 367-381.
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