What are the effects of transparancy on the producer side (PT)?

1. Information of competitors’ prices, discounts, and capacity increases, making it easier to align interests and actions. 2. PT is a prerequisite for effective cartel agreements. It is easy to detect when a firm deviates from the cartel. 3. PT gives new entrants better market information and perhaps better competition, but increased PT makes it easier for the other firms to deter entry of new businesses limiting competition and creating DWL.