Who Benefits from Information Disclosure? The Case of Retail Gasoline Academic Article uri icon

abstract

  • © 2019, American Economic Journal: Microeconomics. How does online price disclosure affect competition when both consumers and firms can use the disclosed information? This paper addresses this question exploiting the sequential implementation of an online price-disclosure policy in the Chilean retail gasoline industry. The results show that disclosure increased margins by 9 percent on average, though the effects varied across the country depending on the intensity of local search behavior. Because margins increased the least, and even decreased, in high-search areas, where income is also higher, the results also show that price disclosure policies may have important distributional effects.

altmetric score

  • 6.05

author list (cited authors)

  • Luco, F.

citation count

  • 12

publication date

  • May 2019