GABSZEWICZ, Jean; LAUSSEL, Didier; TAROLA, Ornella - Center for Operations Research and Econometrics (CORE), … - 2008
-term
relationships with their customers. In spite of new delivery channels in this
sector (phone, internet,interalia), trust and … profits
(uH −uL)(b−2a)2
9(b−a) .
Let us denote by ∆ the value uH −uL and define x by x = ab. The sign of the
difference … between profits from entry and profits from acquiring Firm L has the
same sign as the expression
s(∆−s)
(3∆ +s)2 −
1
9(1−2x)
2 …