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' ability to cooperate. In an experimental market with price competition we show that both inflation and deflation signicantly …
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Low key rates hurt the profits of deposit-taking institutions in a differentiated Bertrand game if there is neither a tax on banknotes, nor a limit on its quantity, nor a reduction of its quality. By making the electronic dollar the unit of account and taxing paper currency, the central bank can...
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A standard macroeconomic model based on monopolistic competition (Dixit-Stiglitz) does not account for the strategic … behaviors of oligopolistic firms. In this study, we construct a tractable Hotelling duopoly model with price stickiness to … price stickiness. (2) The real effect of monetary policy under duopolistic competition is larger than that in a Dixit …
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