Time = 120

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 tex2html_wrap_inline1212 . 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): tex2html_wrap_inline1214 . 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 tex2html_wrap_inline1216 . In detail, the blue broker is rejecting consumers for which tex2html_wrap_inline1218 . The rejected consumers in the range tex2html_wrap_inline1220 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 tex2html_wrap_inline1222 , but consumers with interest levels of less than tex2html_wrap_inline1224 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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