Tourist-trap model e. g. if the cheaper store chooses a discount d=c(n-1)+ 1c. From this you can see that if n is small, the deviating store does not have to lower price as much to attract customers. And the less the store needs to lower price the less profits it will for ego by doing so. This means the smaller n the less likely the monopoly price can be an equilibr rIum This is contrary to what we see under full information and we need to appreciate this result both from the point of view of learning and exams. recall that our argument did not hinge on the size of c. Reducing search costs does not help! The existence of infinitesimal search costs make the competitive equilibrium break down and only possible single price equilibrium features the monopoly priceTourist-trap Model