In the event the companies normally identify their products well enough to be certain pricing over marginal will cost you, and self-confident riches transfers is produced.
When the mainstream phase implies homogeneous products, we have seen that prices are reduced towards marginal costs, rendering the psychological distance costs t i irrelevant. Wealth transfers are zero, resulting in S m a squirt app i n < S l a b e l ? 1 3 ( 2 t c t + t f t ) ? 2 F > 0 . Similar results follow when comparing wealth transfers per firm S i j and per FT product sold s ? i j . The condition implies that the amount of wealth transfers generated in a mainstream market with homogeneous products is smaller as long as wealth transfers in the labeling phase are positive. This must be the case, unless the market is too small to sustain two firms (the left-hand side of the condition equals profits in the labeling phase).
We currently learn the differences between your labels phase and main-stream phase, the latter are appeared of the often homogeneous or heterogeneous issues
A somewhat other image is provided when your mainstream stage pertains to heterogeneous points, enabling companies and also make positive profitsparing full amounts of wide range transfers efficiency (5) S l a b age l ?