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The use of traditional industry-level profitability indicators for assessing the state of competition is problematic for two reasons. First, short-term variation reflects business cycles more than it does the impact of competition policy. Second, rough industry-level indicators hide different...
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pricing algorithms that allow for high-frequency price changes. What are the implications for price competition? We develop a … model of price competition where firms can differ in pricing frequency and choose algorithms that autonomously react to … pricing algorithms lead to meaningful increases in markups, especially for firms with superior pricing technology …
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