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Duopolies with social propensity
1 : Inesc tec
In duopolies where in the first stage firms engage in a Bertrand competition, we study the effect of introducing a generic form of social influence in the utility of a finite set of consumers, who choose strategically taking into account the consumption choice of other consumers. We characterize local market equilibria through the notion of subgame-perfect Nash equilibrium with first stage local pure price equilibrium for firms.
