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pairwise stable network as an absorbing state, stochastic stability in two perturbed processes provides a significant … concentration on each side of the market of a random information shock. The analysis captures stylized facts, related to market … fragmentation, concentration and contagion asymmetry, in several two-sided economies. …
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In a market with two exclusive manufacturer-retailer pairs, we show that colluding manufacturers may not be able to attain supra-competitive profits when contracts with retailers are secret. The stability of manufacturer collusion depends on the retailers' beliefs. We consider various dynamic...
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