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Unformatted text preview: Similar to advertising: both advertise = split profit, one advertises=higher profit * Common resources, shared lake; more pump=more water/profit Might cooperate if they play the dilemma enough times and look at long run benefit * an eye for an eye, penalizing the other, could make them cooperate *Should try to make them competitive Predatory pricing to drive out small competitors. Tying/ Bundling: a package of something desirable+undesirable ex. Hot girl and her fat friend Nash equilibrium a situation in which economic actors interacting with one another each choose their best strategy given the strategies that all the other actors have chosen Resale price maintenance can be viewed as anticompetitive, since price cannot go below the set amount. However...
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This note was uploaded on 04/02/2010 for the course AGEC 200 taught by Professor Anwarnaseem during the Winter '10 term at McGill.
- Winter '10