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real world we observe that prices for such products decrease over time. However, game theory predicts that producers should …
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either charge a high unadvertised price or randomize in an interval of lower advertised prices. Theory predicts that … of the human buyers, this advertising leads to strongly competitive pricing that is inconsistent with the theory …
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This paper studies oligopolistic firms’ exploitation of a renewable natural resource in a differential game. It is well known that finding Markov perfect equilibrium in differential games is extremely difficult except for games that are linear-quadratic. In this paper, we develop a...
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