The Cost of Transparency !

What is it about?

This article presents a critical viewpoint on the negative aspects of market, price and cost transparencies in terms of its costs to the consumers. Is market transparency even possible? How does the internet impair consumer judgement? Can companies effectively assign costs? Research have shown that information on the Internet can add both costs and risks to the consumer’s value judgment. Considering that value perception is subjective, such information may not be helpful. Also, arbitrary judgments in cost accounting make it more difficult to compare unit cost, as it is difficult to allocate resources effectively. Three key issues when cost information is provided to the consumers will be thoroughly discussed.

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Why is it important?

This article lends great value and provides a critical perspective where it is discussed whether transparent unit cost revelation will be beneficial to customers. Could it be more costly and less viable than what is originally assumed? Are there any real benefits to creating cost transparency to customers?

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