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nonlinear pricing competition. We estimate these price-cost margins using quarterly data from the early U.S. cellular telephone … industry between 1984 and 1988. Our results indicate that the margins are increased under duopoly, due to a significant … in the low-end user segment, relative to high-end users. In that sense the benefits of competition, which are largely due …
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Barriers to entry are regarded as major impediments to the working of markets. Entry must not necessarily actually take place - the perceived threat of entry may encourage incumbent firms to behave as if they are in a competitive market, even if they are not. We present empirical evidence on...
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We investigate the effect of competition on price dispersion in the airline industry. Using panel data from 1993 to … 2008, we find a non-monotonic effect of competition on price dispersion. An increase in competition is associated with …
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