Transparency (market)

Market transparency referred to in the economics and the availability of information in a market. The more information is available on a market, the more transparent it is.

The perfect or full market transparency is one of the assumptions of the theoretical model of perfect competition and is characterized by the fact that all participants complete information on all traded goods whose quality, price and other conditions (eg, location, delivery) possess. In Germany this principle was applied by creating a market transparency at the Federal Cartel Office, in particular to compare prices at gas stations and, if necessary, to identify existing pricing strategies of oil companies.

Conceptual history

Oskar Morgenstern had already 1935 " Perfect foresight and economic equilibrium " demonstrated in his essay ( in Issue 6 of the Journal of Political Economy ), that with perfect knowledge of all market parameters, including the planning and future actions of all market players, logically can not market to function; because " with perfect foresight, the plans and actions of a market participant to the knowledge of the plans and future actions of all others would have focused ... Since this condition holds for all market participants, the actions would be all determined before they can be determined. " Similar to a perfectly smooth surface no more movement allowed but be imperfect smooth for locomotion and must offer resistance, is a prerequisite for the functioning of markets always imperfect knowledge of market participants. Practically, it may therefore be at market transparency always only be a degree of (objective) market clarity and a degree of (subjective) Market Overview. The economics have been in the aftermath of the designation of complete market preference.

Greater market transparency are independent, open to the public reports on the quality. These include health and nursing, for example, the quality reports of hospitals.

A high degree of market transparency can lead to disintermediation, that is, the elimination of (commercial ) intermediaries lead. So often the increased market transparency through the new information media (Internet, WWW) as a reason for the economic decline of many wholesalers and retailers viewed in some market segments (see also E-commerce, E- procurement).