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U.S. Securities and Exchange Commission In Brief FY 2013 Congressional Justification

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Some authors have modeled the multiproduct price competition in di erentiated goods where, as in our model, consumers can engage in mixing purchases between shops. Lal and Matutes (1989) have studied price competition in a duopoly selling two independent goods. They nd that in equilibrium retailers will charge di erent but deterministic prices and may even capture the entire consumer surplus of the less mobile consumers. As opposed to our model in Lal and Matutes (1989) goods are di erentiated (for some consumers), the consumers di er in their willingness to pay and there is a economies of scale in shopping. In contrast, we assume that the two goods are...
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U.S. Securities and Exchange Commission In Brief FY 2013 Congressional Justification

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