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Social Investment Manual An Introduction for Social Entrepreneurs

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As a result, the retailer cannot keep the sum of prices equal to their joint reservation value and start decreasing one of them to compete for the captives as by doing so she induces the captive consumers to buy only the cheaper good. Not only the retailers are not able to earn additional pro ts through discriminating the two groups of consumers but also they will earn lower pro ts than they would if all of them were selling only the bundle. When forcing consumers to buy both goods together retailers disallow an implicit competition between the two goods within their store. This phenomenon is unrelated to the competition...
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Social Investment Manual An Introduction for Social Entrepreneurs

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