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I derive a Net Innovation Pressure (NIP) formula based on logic that is similar to the logic underlying Upward Pricing Pressure (UPP) and that takes account of R&D spillovers. As with UPP, diversion is a key determinant of NIP, but the price-cost margin is not. The formula, which is quite...
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The new US Department of Justice and Federal Trade Commission vertical merger guidelines promise enforcement based on how vertical mergers are likely to affect static pricing incentives, but the techniques for making robust predictions about the price effects of vertical mergers are...
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