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Using firm and industry data, we establish two facts: (i) Uncertainty about demand conditions not only reduces export … of export shares from the most to the least productive incumbents. Greater skewness of the demand distribution and …
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future demand. Possibly, consumers in our model prefer a flat rate to a measured tariff, even though this choice does not … are strong variations in demand. Moreover, we analyze the optimal nonlinear tariff. This tariff has a large flat part when … Pricing ; Uncertain Demand …
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