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On the Implications of Reporting Retail Food Prices over Extended Periods
Author(s) -
FAMINOW MERLE D.,
BENSON BRUCE L.
Publication year - 1987
Publication title -
journal of consumer affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.582
H-Index - 62
eISSN - 1745-6606
pISSN - 0022-0078
DOI - 10.1111/j.1745-6606.1987.tb00187.x
Subject(s) - duopoly , price setting , profit (economics) , economics , reference price , business , microeconomics , marketing , cournot competition
This paper reports the results of economic experiments designed to determine the implications of a changed information flow to sellers in spatial markets. The experimental design used duopoly posted‐price markets. Apparently, price and firm profit levels increase as a result of instituting a price reporting system when consumers are fully informed. In light of these findings, it appears that a retail food price reporting system may have adverse impacts on consumers, especially when instituted for longer time periods.