Prices and Information Under Imperfect Competition |
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Authors: | Torben M Andersen & Morten Hviid |
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Institution: | University of Aarhus,;University of Warwick |
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Abstract: | Imperfectly competitive product markets cannot be informationally efficient as private information has strategic implications interfering with price adjustment. This is illustrated in a duopoly model with sequential price setting where private information either leads to prices not being adjusted to all available information or to adjusted but biased prices. |
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