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. Firms respond to increased competition with an increased effort to obfuscate, rather than with more competitive pricing. As … the quality of each dimension, and there are diminishing returns to quality, increased competition implies an efficiency …
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Recent theories suggest that consumers' search efforts are a function of prices and prices changes, respectively. This may help to explain the 'rockets and feathers' phenomenon often assigned to collusion – prices rise like rockets when costs increase and fall like feathers when costs...
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