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Appendix S1: Proofs of Theorems.

Appendix S2: A Discussion of Four Cases in Figure 1.

Appendix S3: An Online Retailer's Expected Profit Function.

Appendix S4: Numerical Results for the Sensitivity Analysis in Section 4.3.

Appendix S5: A Simulation Approach for the Game Analysis in Section 5.

Appendix S6: Simulation Results for two Examples in Section 5.

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