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| Author: | Marx, L. M. Shaffer, G. |
| Title: | Predatory accommodation: Below-cost pricing without exclusion in intermediate goods markets |
| Journal: | RAND Journal of Economics
1999 : SPRING, VOL. 30:1, p. 22-43 |
| Index terms: | Economic theory Pricing Policy Costs Competition Retailing Industries |
| Language: | eng |
| Abstract: | In this paper, it is shown that below-cost pricing can arise in intermediate goods markets when a monopolist retailer negotiates sequentially with two suppliers of substitute products. Below-cost pricing by one supplier allows the retailer to extract rents from the second supplier. |
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