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This paper considers a market in which only the incumbent's quality is publicly known. The entrant's quality is observed by the incumbent and some fraction of informed consumers. This leads to price signalling rivalry between the duopolists, because the incumbent gains and the entrant loses when...
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costs are high and if there are no such benefits. It reduces price competition and segments the market. In a second …
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This paper derives a three stage Cournot duopoly game for research collaboration, research expenditures and product … market competition. The amount of knowledge firms can absorb from other firms is made dependent on their own research efforts … positive effect on R&D efforts both under research joint venture and under research competition. Firms' propensity to …
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We examine the relation between consumer search and equilibrium prices when collusion is endogenously determined. We develop a theoretical model and show that average price is a U-shaped function of the measure of searchers: prices are highest when there are no searchers (local monopoly power)...
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