Robust results on the sharing of firm-specific information: Incentives and welfare effects

B-Tier
Journal: Journal of Mathematical Economics
Year: 2010
Volume: 46
Issue: 5
Pages: 855-866

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Contrary to much of the existing literature, we obtain robust and clear-cut results for the incentives and welfare effects of information sharing when information is firm-specific. We show that firms' incentives to share this type of information are aligned with social welfare. Whenever revealing information is the dominant strategy (such as for Cournot firms revealing costs or Cournot and Bertrand firms revealing demand), it is socially beneficial. Only cost information in Bertrand competition will not be revealed but this is socially desirable, too. These findings are independent of distributional assumptions on random shocks and signals and hold for general asymmetric oligopoly with any mixture of substitute, complementary and independent goods.

Technical Details

RePEc Handle
repec:eee:mateco:v:46:y:2010:i:5:p:855-866
Journal Field
Theory
Author Count
3
Added to Database
2026-01-24