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 …

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 …

is more conducive to entry - precisely because of its inefficiency - it usually generates higher expected revenue. We … also discuss the effects of lock-ups, matching rights, break-up fees (as in takeover battles), entry subsidies, etc. …

, 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 …

In industries with network effects, incumbents’ installed bases create barriers to entry that discourage entrepreneurs … from developing new innovations. Yet, entry is not the only commercialization route for entrepreneurs. We show that the … necessarily restrict innovation incentives. We also show that network effects promote acquisitions over entry and that the …

procurement, may hinder entry by new firms in public procurement markets. In this paper we report results from a laboratory … experiment exploring the relationship between reputation and entry in procurement. We implement a repeated procurement game with … reputational incentives for quality and the possibility of entry. We allow also the entrant to start off with a positive …