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classical market theory) is no longer guaranteed; hence, we investigate the nature of non-price competition and how markets … might evolve in its presence. We develop a quality competition model based on matching theory. Equilibria of the quality … predictions of the model. In particular, price controls induce non-price competition between agents both in theory and in the …
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We investigate mergers in markets where quality differences between products are central and firms may reposition their product lines by adding or removing products of different qualities following a merger. Such mergers are materially different from those studied in the existing literature....
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