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Thus far we have assumed that the availability of backstop technology is common knowledge to all market participants. Therefore, the fully informed price-taking NR firms
Thus far we have assumed that the availability of backstop technology is common knowledge to all market participants. Therefore, the fully informed price-taking NR firms understand when the back- stop will enter the industry. The resulting equilibrium price and extraction trajectories incorporate this knowledge
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Microeconomics
Authors: Dean S. Karlan, Jonathan J. Morduch
2nd edition
1259813337, 1259813339, 978-1259813337
