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We consider dynamic pricing and demand learning in a duopoly, both from the perspective where the firms compete against … profitable for both firms in the duopoly, regardless of the model parameters. Next, we construct a price algorithm that learns … the fair Pareto optimal price from accumulating data if deployed by both firms in the duopoly, and prove theoretical …
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This paper studies the welfare consequences of a vertical merger that raises rivals' costs when downstream competition is a la Cournot between firms with constant asymmetric marginal costs. The main result is that such a vertical merger can nevertheless improve welfare if it involves a...
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