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With the consumer front, although not, everything has altered

With the consumer front, although not, everything has altered 3.2. The opposite stage About choice stage, the fresh new border of unawareness and you can disinterest ranging from both sector areas disappeared, leading to that included sector and you will an effective duopolistic business problem. But really, disinterest in the old-fashioned company’s top and you will ideological grounds on Base company’s front side avoided each other companies regarding making changes in the fresh new quantity of money transfers it desired to transfer (Nicholls and you will Opal 2005 ). And this, along with from the option phase, the typical agency operates inside a-c t = 0 , move zero wide range transfers, whereas new Ft business stays working from inside the an effective f t = step 1 , moving the maximum amount of money transfers. All consumers are aware of their fairness preferences, also those in the conventional market segment ( t c t > 0 ) . Consequently, each firm’s market share is now endogenously determined by the consumers’ utility function. Consumers buy the conventional (FT) product whenever U c t ( x ) > ( < ) U f t ( x ) and market shares are […]