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Broker 2 (yellow) is offering categories 2 and 3, so it
captures the market in subscribers interested in both.
The utility isosurfaces for these consumers lie along diagonal
planes with normal (0 1 1), corresponding to equations of the form
.
The other two brokers are
competing for category 1. Their behavior can be understood
in terms of the analysis of the simple price war in
section 3. Broker 1 (blue)
is offering a lower price than broker 3 (red):
. In terms of Fig. 2,
the blue broker is occupying a position on its ``cheap'' hump, while
the red broker is on its ``expensive'' hump.
This results in two visibly distinct
layers of consumers in Fig. 13 at time 120.
In both cases, the utility isosurfaces for these
consumers correspond to equations of the form
. In detail, the blue
broker is rejecting consumers for which .
The rejected consumers in the range
are
being picked up by the red broker. At its current price, the red
broker would be willing to serve consumers with interest level
as low as , but consumers with interest levels
of less than find it unprofitable to subscribe.
Consumers with high interest levels in all categories subscribe to the
yellow broker and either the blue or the red broker. These can be seen as
orange and partially hidden green cubes near the far corner.
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