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→Addendum
*The Red/White problem should have assumed that the innovator made their phone red (i.e. did not keep white).
**It is not clear that given the option to keep white would be exercised even if there where economies to scope. The economies would have to be sufficiently large to overcome the problem of competiting with yourself!
*The horizontal model should have used Hotelling for prices and profits, and the Salop for entry - Salop exists to study entry in Hotelling models.
===References===
