In this article, Michael Salinger shows how a dominant firm that faces competition for part but not all of its market can maintain prices above competitive levels by offering cliff discounts with a threshold that allocates some market share to its competitors. To read more, click the link below.
Trends in competition in the United States: what does the evidence show?
Has the United States economy become less competitive in recent decades? One might think so based on a body of research that has rapidly become influential for...