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The present article discusses the economic and legal effects of single-product loyalty discounts. It is clear that … arguments concerning the "pro-competitive" effects of such discounts must be judged with skepticism. This applies in particular … to the assumed effects of loyalty discounts resulting from double profit surcharges or falling average costs, as well as …
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The answer to the question in the title is yes for the case of ad-valorem taxes, a foreign industry that produces a vertically differentiated good of higher quality, and costs that take the form of qualitydependent fixed costs for both the foreign and domestic firm. The domestic industry loses...
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