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In this paper, unlike the conventional wisdom, we demonstrate that the relationship between the size of the market and number of firms would be non-monotonic. While moderate rise in the size would force the local firms to exit and only the foreign firm rules, substantial rise in the size would...
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We consider choice of options for a foreign innovating firm to license its technology for producing the high quality good to a domestic firm, or to enter the market of the domestic country with or without license. Under the assumption of uniform distribution about taste parameters of consumers;...
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compatibility. Finally, we show the robustness of our results when products are horizontally differentiated. -- Bertrand duopoly …We analyze duopoly Bertrand competition under network effects. We consider both incompatible and compatible products … equilibrium under compatibility when compared with incompatible products. However, .firms never have strict incentives to achieve …
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We analyze market dynamics under Bertrand duopoly competition in industries with network effects and consumer switching …
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