Coibion, Olivier (contributor); Einav, Liran (contributor); … - 2006
nearest firm than reinvesting
market research cost in the other quality segment.
Ex-ante constraints Let Eu
∗
q|z
denote the … zero, the participation constraint
requires that
11
Eu
∗
q|q
= δ
q
−v
q
p
q
−E[t
q
]−R ≥ 0 ∀q ∈ {l,h} (10)
where E[t
q
] is …, expected transportation costs are E[t
q
]=
ω
q
4n
q
.
Similarly, the incentive constraints require that
Eu
∗
h|h
= δ
h
−v
h
p
h …