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We examine price competition under product-specific network effects, in a duopoly where the products are differentiated horizontally and vertically. We emphasize the role of the consumers' expectations formation. When expectations are not influenced by prices, the market may be shared (but shares must be equal, unless product qualities differ) or one firm(More)
a r t i c l e i n f o We explore aspects of two-part tariff competition between duopolists providing a homogeneous service when consumers differ with respect to their usage levels. Competition in only one price component (the fee or the rate) may allow both firms to enjoy positive profits if the other price component has been set at levels different enough(More)
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