Conconi, Paola; Legros, Patrick; Newman, Andrew F. - Department of Economics, Boston University - 2008
decisions. The success probability in this case is 1 (a bi)2. Alternatively, they can integrate
by engaging a headquarters (HQ … icting private bene ts stemming from di erent corporate
cultures and/or managerial vision.
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in the success probability. For … failure each receives zero).
For each match (A,Bi), total revenue in case of success is given by the product market price,
pi …