Pires, Cesaltina Pacheco; Catalão-Lopes, Margarida - Centro de Estudos e Formação Avançada em Gestão e … - 2012
This paper develops a model where the incumbent may expand to a second related market so as to signal the existence of scope economies and deter potential entry. We show that the incumbent only expands to another market when scope economies are large enough. Thus expansion is indeed a signal of...