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The buyer is willing to pay $300 for a commodity. Incumbent has cost of $150. potential entrance with a cost C uniformly distributed between zero

The buyer is willing to pay $300 for a commodity. Incumbent has cost of $150. potential entrance with a cost C uniformly distributed between zero and $300. contract between buyer and seller written in first. But cover second. Entrance decides whether or not to enter in second period. Bertrand competition post entry with the contract entry occurs __ of the time

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