All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

Martin Sefton and John Morgan
''Information externalities in a model of sales''
( 2001, Vol. 4 No.7 )
We anlayze Varian's (1980) Model of Sales, and show that when the number of uninformed consumers increases, prices become less competitive for all consumers. Thus, the influx of uninformed consumers generates a negative externality increasing the prices paid by informed consumers.
Manuscript Received : Jul 18 2001 Manuscript Accepted : Jul 18 2001

  This abstract has been downloaded 1805 times                The Full PDF of this paper has been downloaded 155958 times