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Two Economic Applications of Sympathy

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  • David Sally
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    Abstract

    The notion of sympathy is analyzed in the setting of coordination between duopolists and in the setting of the sale of a used car of possibly low quality. In both cases, the analysis suggests a number of empirical regularities concerning the effects of social interaction, physical distance, and psychological affinity. These regularities are confirmed by various historical accounts of collusion and by national survey results on used car purchases. Copyright 2002, Oxford University Press.

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    Bibliographic Info

    Article provided by Oxford University Press in its journal The Journal of Law, Economics, and Organization.

    Volume (Year): 18 (2002)
    Issue (Month): 2 (October)
    Pages: 455-487

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    Handle: RePEc:oup:jleorg:v:18:y:2002:i:2:p:455-487

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    Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
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    Cited by:
    1. José Atilano Pena López & José Manuel Sánchez Santos, 2007. "Los fundamentos morales de la economía: una relectura del problema de Adam Smith," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 9(16), pages 63-87, January-J.

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