Firms' Information Exchanges Reshape Consumer Welfare, Reshape Competitive Landscape
The article explores how information sharing between companies affects the well-being of producers, consumers, and society. It looks at different types of competition and risks, and how firms interact in oligopoly models. The researchers analyze the impact of factors like the number of firms and the type of competition on welfare. They find that information exchanges can have both positive and negative effects on different parties. The study suggests that trade associations play a crucial role in information sharing among firms, influencing the effectiveness and limitations of these groups.