We provide sharp lower and upper bounds on the ratio of decentralized to centralized profits when multiproduct firms offering differentiated products engage in price competition. The bounds depend oil the demand sensitivity matrix but are independent of marginal costs. (C) 2008 Elsevier B.V. All rights reserved.
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Univ Lyon, UJM St Etienne, CNRS, GATE L SE UMR 5824, F-42023 St Etienne, FranceUniv Lyon, UJM St Etienne, CNRS, GATE L SE UMR 5824, F-42023 St Etienne, France
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Univ Calif Los Angeles, Anderson Sch Management, 110 Westwood Plaza,D402, Los Angeles, CA 90095 USAUniv Calif Los Angeles, Anderson Sch Management, 110 Westwood Plaza,D402, Los Angeles, CA 90095 USA
Friedman, Henry L.
Hughes, John S.
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Univ Calif Los Angeles, Anderson Sch Management, 110 Westwood Plaza,D402, Los Angeles, CA 90095 USAUniv Calif Los Angeles, Anderson Sch Management, 110 Westwood Plaza,D402, Los Angeles, CA 90095 USA
Hughes, John S.
Saouma, Richard
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Univ Utah, David Eccles Sch Business, 1655 E Campus Ctr Dr 7128, Salt Lake City, UT 84112 USAUniv Calif Los Angeles, Anderson Sch Management, 110 Westwood Plaza,D402, Los Angeles, CA 90095 USA