Profit Raising Entry

Common wisdom suggests that entry reduces profits of the incumbentfirms. On the contrary, we show that if the incumbents differ in marginal costs and theentrants behave like Stackelberg followers, entry may benefit the incumbents who arerelatively cost efficient while it always hurts the cost inefficient incumbents...

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Year of publication:	2008-05-01
Authors:	Mukherjee, Arijit ; Laixun Zhao
Institutions:	University <Nottingham> / Department of Economics
Subject:	Grenzkosten \| Gewinn \| Einleitung \| terms of access

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Extent:	108544 bytes 17 p. application/pdf
Series:	The University of Nottingham / School of Economics - discussion papers Discussion Paper ; No. 08/05
Type of publication:	Book / Working Paper
Language:	English
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; L13 - Oligopoly and Other Imperfect Markets ; Strategic management ; Specific management methods ; Individual Working Papers, Preprints ; No country specification
Source:	USB Cologne (business full texts)

Persistent link: https://www.econbiz.de/10005868596