Schwartz, Warren F.; Wickelgren, Abraham L. - In: Journal of Public Economics 95 (2011) 7, pp. 967-972
We consider the effect of competitor suits in a model in which an incumbent can take an action that deters the entry of a rival. The option to sue the incumbent can provide a subsidy for entry which can maintain competition even when the incumbent takes this action. Liability for the entrant's...