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MS Round 1 Review - Coggle Diagram
MS Round 1 Review
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Model Fit
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Criticism
Infinitely many DCs lined up does not reflect reality - it is an oligopoly, not perfect competition.
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Suggestions
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What is stopping DS flocking to most capable? Maybe its a Hotelling type taste distribution where capability is only one factor
Assumptions Realism
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Criticism
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DPR can help weaker firms - Warranty, congestion
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Result
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Criticism
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In competitive settings, Switching cost inducers reduce price