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In this paper we analyze firms' ability to tacitly collude on pricesin an infinitely repeated duopoly game of vertical productdifferentiation. We show that firms collude if and only if their discountfactor is high enough, i.e. if they value future profits sufficiently. We alsoshow that a lower...
Persistent link: https://www.econbiz.de/10005082634
(2006) who show that piracy is beneficial tothe artist when alternative revenues are important. In our model,however, this … does not carry over to the less popular artist, who isoften harmed by piracy even when alternative revenues are important ….We conclude that piracy tends to reduce musical variety. …
Persistent link: https://www.econbiz.de/10008919597