Emanuele, Bacchiega; Garella Paolo G. - In: The B.E. Journal of Economic Analysis & Policy 12 (2012) 1, pp. 1-18
We study the effects of entry on price in an industry. This assessment is usually carried out under the implicit assumption of “technological inertia”: incumbents cannot change their technologies in response to entry. We remove this assumption by modeling a game where, before quantity...