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We study a novel trade-off in market transparency regulation by estimating a structural model of the German retail gasoline market. Transparent environments enable easy price comparisons and match findings. Restricting transparency such that only the cheapest offers are shown induces firms to...
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improves service quality as perceived by consumers. We find a significant and positive relationship between the Meister title … and consumer ratings and conclude that the certificate is a credible sign of quality. …
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