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The assumption that firms maximize profit has been widely used in Economics to explain firms' behaviors and market outcomes. But the profit maximization assumption may lead to incorrect predictions when firms engage in strategic delegation between owners and managers who might have different...
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This paper identifies conditions under which an industry-wide practice of posted (or list) pricing is a plus factor … posted pricing, it is to facilitate collusion by making it easier for them to coordinate their prices. It is then argued that … the adoption of posted pricing communicates the necessary intent and reliance to conclude concerted action. …
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