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pairwise stable network as an absorbing state, stochastic stability in two perturbed processes provides a significant … concentration on each side of the market of a random information shock. The analysis captures stylized facts, related to market … fragmentation, concentration and contagion asymmetry, in several two-sided economies. …
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This paper examines the role of dual sourcing (e.g., outside options) in vertical and horizontal relations. In a bilateral monopoly market, if either the upstream or downstream firm has outside options, the other firm could lose from seemingly positive shocks, e.g., market expansion or...
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Zaccour (2008) investigates the behaviour of a marketing channel where firms invest in advertising to increase brand equity, showing that an exogenous twopart tariff cannot be used to replicate the vertically integrated monopolist's performance. I revisit the same model proving the existence of...
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