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prediction that APDs are larger when the intensity of competition is higher using a sample of airline fare quotes. Our results … also suggest that airline price dispersion increases with the intensity of competition. …
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A common sales tactic is for a seller to encourage a potential customer to make her purchase decision quickly. We consider a market with sequential consumer search in which firms often encourage first-time visitors to buy immediately, either by making an “exploding offer” (which permits no...
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