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We analyze the effects of consumers' limited attention on welfare in a model of horizontal product differentiation. We present a novel approach of modeling limited attention: an attention radius. Each consumer only notices goods that are within her attention radius, i.e., goods that are...
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-type consumer and more fine-tuned targeting amplifies price competition between firms and decreases firms' profit (competition for …
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list price. However, list price competition occurs if customers are loss-averse with respect to firms charging above …
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-as then firms want to limit the competition in the toll stage by setting lower capacities-or when firms set capacities one … capacities. In our Stackelberg competition, the firms that act last have few if any capacity decisions to influence. Hence, they … are more concerned with the toll competition substage, and set a higher volume/capacity ratio than the public operator …
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Benefit from the advantage of externalities, urban agglomerations are playing more and more important roles in regional economic development. However, present literature failed to distinguish the differences between urban agglomerations' pecuniary externality and technology externality. In this...
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for min RPM critically relies on interbrand competition, and it is-at least in the case of linear demand functions …
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