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All‐units discounts as a partial foreclosure device.

Abstract: We investigate the strategic effects of all‐units discounts (AUDs) used by a dominant firm in the presence of a capacity‐constrained rival. Due to the limited capacity of the rival, the dominant firm has a captive portion of the buyer's demand for the single product. As compared to linear...

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Published in:RAND Journal of Economics (Wiley-Blackwell) Vol. 49; no. 1; pp. 155 - 181
Main Authors: Chao, Yong, Tan, Guofu, Wong, Adam Chi Leung
Format: Article
Published: Wiley-Blackwell Spring2018
Subjects:
European Commission
Economic demand
Antitrust law
Intermediate goods
Commercial products
Online Access:View this record in EBSCOhost