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Explain the intuition behind the result that enough informed consumers can force the limited-information market outcome to the competitive result (consider the tourist-native model: "A model in which some potential consumers have limited information about prices. The market contains a number of uninformed buyers (tourists) who have to incur search costs to find out about prices, and a number of informed buyers (natives) who have perfect information about prices"). What implication might this have regarding a government subsidy of Consumer Reports (a magazine filled with product characteristics and price information)?

Operation Management, Management Studies

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