Simbanegavi, Witness - Economic Research Southern Africa (ERSA)
This paper endogenizes both market transparency and product differentiation in a model of informative advertising á la … Grossman and Shapiro (1984). We find, contrary to Schultz (2004), that an increase in market transparency raises firm profits … but has no effect on product differentiation. We also find that a move from exogenous to endogenous market transparency is …