that Aghion and Bolton's analysis is incomplete in some respects, as they do not model the entry of new suppliers. We … construct a model where entry is costly, so that entering suppliers have to earn a quasi-rent in order to recoup the entry cost …. Reducing an entrant's profits by the help of a breach penalty then reduces the probability of entry in the first place, thus …

may trigger future entry and the collusive agreement is enforced by the most profitable 'grim trigger strategies …' available. It is shown that even in situations where perfect collusion can be sustained after entry, coping with a potential … entrant in a market which is growing over time may completely undermine any pre-entry collusive plans of the incumbent firms …

vertical product differentiation and entry. Both firms face fixed set-up costs and quality-dependent costs of production, and … compete on quality and price. With identical quality-dependent costs, the incumbent will always deter entry if possible, i ….e. if fixed costs are high. Quality will be set at a level lower than the optimal quality set if entry was accommodated. If …

asymmetric firms, restructuring, and entry. We show how these welfare effects depend on the initial level of market development …, and restructuring and entry costs. The model generates an endogenous demand for infrastructure investment, and the … simulate the relative welfare effects of reducing transport, restructuring and entry costs, and we evaluate in each case the …

We propose a methodology for estimating the competition effects from entry when firms sell differentiated products. We … first derive precise conditions under which Bresnahan and Reiss' entry threshold ratios (ETRs) can be used to test for the … presence and to measure the magnitude of competition effects. We then show how to augment the traditional entry model with a …

How does firm entry affect innovation incentives and productivity growth in incumbent firms? Micro-data suggests that … there is heterogeneity across industries - incumbents in technologically advanced industries react positively to entry, but … not in laggard industries. To explain this pattern, we introduce entry into a Schumpeterian growth model with multiple …

, predatory, and entry deterring behaviour. Ascending and uniform-price auctions are particularly vulnerable to these problems (we …

, and that they can translate into an entry barrier, protecting the position of an inefficient incumbent; or that …

affected by demand fluctuations. Our model gives rise to procyclical entry, prices, and price-cost margins, although the … pro- or countercyclical if the incumbent is the first mover. Moreover, our results show that entry deterrence by the …

effect on broadband penetration, compared to those areas where the loops are not unbundled. LLU entry instead has a strongly …