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duopoly game, where consumers are horizontally and vertically heterogeneous, and firms have different cost structures and … duopoly case, when markets are interdependent, the incentive compatibility constraints are slack, and there is no quality …
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Price discrimination is generally thought to improve firm profits by allowing firms to extract more consumer surplus. In competition, however, price discrimination may also be costly to the firm because restrictive incentive compatibility conditions may allow the competing firm to gain market...
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