Competitive tension refers to pressure that is considered to exist among firms operating in a competitive market and that forces them to take competitive action against each other. An imaginary upper limit of competitive tension symbolizes the difference between whether to take competitive...

This paper exploits a natural experiment involving self-regulation in the ready-to-eat (RTE) breakfast cereal industry to evaluate how firms respond to entry in light of changes in competition and to estimate the value of brand equity as products are re-positioned. Self-regulation led to a...