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This paper discusses the strategic role of mismatching, where players voluntarily form inefficient teams or forego the formation of efficient teams, respectively. Strategic mismatching can be rational when players realize a competitive advantage (e.g. harming other competitors). In addition, the...
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We show that competing firms relax overall competition by lowering future barriers to entry. We illustrate our findings …-period profits. This dampens competition for serving the first-period market. …
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