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Problem of double marginalization

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Reference no: EM133083381

An example of the problem of "double marginalization" is:

1. The retail price being too high due to retailer incentives to increase margins above competitors

2. The retail price being too low due to intense retailer competition

3. The retail price being too high due to an inclusion of both manufacturer and retailer markup

4. The retail price being too low due to an inclusion of retailer and manufacturer markup

Reference no: EM133083381

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