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offers especially when many consumers prefer comparable offers. This occurs after initial periods with strong competition and … leads to lower welfare for all consumers. In treatments where firms cannot monitor the competition, firms end up having to …
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We conducted a laboratory experiment to study the price setting behavior in two-sided markets. We seek to answer two specific research questions: Do participants charge the equilibrium prices that can be derived from a theoretical model? How is the price setting affected by the characteristics...
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