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  • If one provider does decide to aim at a particular section of the market (say, lower-cost goods) then in order to do so, he just offers goods at a very slighter lower cost than his rivals: he does not consider his cost in isolation, but relative to the competition. (As an aside, I am not sure that hotels obey Hotelling's law, but other things do, e.g. political parties.)In an increasingly global ma
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