A revenue-sharing referral fee in a Bertrand duopoly admits parameters where the retailer's payoff exceeds its single-agent profit while the seller's equilibrium price is below the retailer's, a win for both firms and consumers.
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A shared-revenue Bertrand game
A revenue-sharing referral fee in a Bertrand duopoly admits parameters where the retailer's payoff exceeds its single-agent profit while the seller's equilibrium price is below the retailer's, a win for both firms and consumers.