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The Internet has changed the nature of doing business as well as the nature of competition in many industries. Consumers are more empowered than ever with valuable information such as prices, products, and store ratings. Because of this, some researchers even predicted, during the early stage of...
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This paper studies the consequence of an imprecise recall of the price by the consumers in the Bertrand price competition model for a homogeneous good. It is shown that firms can exploit this weakness and charge prices above the competitive price. This markup increases for rougher recall of the...
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Zaccour (2008) investigates the behaviour of a marketing channel where firms invest in advertising to increase brand …'s advertising effort, performing this task both in the static and in the dynamic game. Then, I show that an analogous result emerges …'s advertising effort; and (ii) by using a contract which is linear in the brand equity, in the dynamic case …
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