13 Ago The new intuition to have Proposal 6 is really as employs

If auditor dos has actually a competitive virtue about NAS business versus a few most other NAS competitors, auditor 2 can charge self-confident NAS fees while new competition try involved with Bertrand competition. Which have NAS restrictions so you can review website subscribers, auditor 2 produces a much bigger NAS lease whenever auditor 2 deal auditing characteristics so you're able to visitors company just than when auditor 2 sells auditing functions so you can subscribers and . It difference in the NAS rents is actually determined by the distinction on level of NAS members. Consequently, auditor 2 provides bonuses to increase audit top quality market auditing services so you're able to client organization on condition that you will find NAS limitations in order to audit subscribers. Complete, NAS limitations still perception review top quality with additional competition about NAS market but the perception relies on this new shipments regarding NAS aggressive advantage.