. Examples include market entry games, coordination games, and the bar-room game depicted in the movie 'A Beautiful Mind'. The …

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 …