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paper studies a model where firms precommit to capacity levels before competing in a uniform price auction. The analysis … equilibrium, the inefficient firm obtains a relatively large market share. -- spot market ; capacity game ; auction mechanism …
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This paper examines the relation between prices in conventional stores and on the Internet. Main results from the theoretical analysis are i) we expect a discrete fall in prices in conventional stores as the share of the population with access to Internet reaches a critical level, ii) the...
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