Whom to Inform about Prices? Evidence from the German Fuel Market

Montag, Felix; Sagimuldina, Alina und Winter, Christoph (9. August 2023): Whom to Inform about Prices? Evidence from the German Fuel Market. Collaborative Research Center Transregio 190, Discussion Paper No. 415

Abstract

Combining a theoretical model of imperfect information with empirical evidence, we show how the effect of providing price information to consumers depends on how well informed they are beforehand. Theoretically, an increase in consumer information decreases prices more, the fewer ex ante informed consumers there are. Empirically, we study mandatory price disclosure in the German fuel market for two fuel types that differ in ex ante consumer information. The decline in prices is stronger when there are fewer ex ante informed consumers. The magnitude of the treatment effect declines over time but is intensified by local follow-on information campaigns.

• Dokumententyp: Paper
• Keywords: mandatory price disclosure, consumer information, retail fuel market
• Fakultät: Volkswirtschaft > Collaborative Research Center Transregio "Rationality and Competition"
• Themengebiete: 300 Sozialwissenschaften > 330 Wirtschaft
• JEL Classification: D83, L41
• Sprache: Englisch
• DFG: Gefördert durch die Deutsche Forschungsgemeinschaft (DFG) - 280092119