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In a context of vertical product differentiation we analyze the effect of delegation on quality levels. We consider a duopoly where firms can delegate the quality-determining activities to an agent. The realization of the random cost associated with the quality level is known, at no cost, by the...
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In a context of vertical product differentiation we analyze the effect of delegation on quality. We consider a duopoly where firms can delegate to an agent the quality determining activities. The quality level is determined by the level of a random fixed cost. The actual realization of this...
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