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| Volume 5, No. 3,
December
2006
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Financial
Predation by the "Weak" |
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Spiros Bougheas |
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School of
Economics, University of Nottingham, U.K. |
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Saksit
Thananittayaudom |
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Faculty of
Economics, Chulalongkorn University, Thailand |
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| Abstract |
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We consider a
Stackelberg game, where a financially constrained leader
competes with a "deep pocket" follower, and analyze the
trade-off between a financial and a strategic advantage for both
the design of financial contracts and market structure. |
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Key words:
predation; financial contracts; Stackelberg game |
| JEL
classification:
G32; G43 |
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