Price Transparency, Media, and Informative Advertising

• 成果类型: Article
• 署名作者: Ater, Itai; Rigbi, Oren
• 署名单位: Tel Aviv University; Ben-Gurion University of the Negev
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MICROECONOMICS
• ISSN/ISSBN: 1945-7669
• DOI: 10.1257/mic.20200337
• 发表日期: 2023
• 页码: 1-29
• 关键词: consumer search; internet; complexity; disclosure; QUALITY

摘要

We study the effects of a price transparency regulation in Israeli supermarkets. Using price data collected before and after the regu-lation and a difference-in-difference research design, we show that price levels and price dispersion declined significantly after the reg-ulation. Chains also began setting identical prices in all stores. We use Robert and Stahl (1993) to interpret our findings, showing that low-priced chains extensively used price advertising after prices became transparent. These chains referenced price-comparison surveys conducted by the media to induce credibility for ads. Our findings highlight the importance of price transparency and the procompetitive role of informative advertising.